8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 23, 2014

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

(Exact Name of Registrant as Specified in Charter)

Switzerland	001-32938	98-0681223
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

Lindenstrasse 8

6340 Baar

Zug, Switzerland

(Address of Principal Executive Offices and Zip Code)

Registrant’s telephone number, including area code: 41-41-768-1080

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure.

On June 23, 2014, Allied World Assurance Company Holdings, AG (the “Company”) released its 2013 Global Loss Triangles report. A copy of this report is attached hereto as Exhibit 99.1 and is also available at the “Investor Relations” section of the Company’s website at www.awac.com.

The information in Item 7.01 of this report is being furnished, not filed, pursuant to Regulation FD. Accordingly, the information in Item 7.01 of this report will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference. The furnishing of the information in this report is not intended to, and does not, constitute a determination or admission by the Company that the information in this report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in the report in Exhibit 99.1 reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, our forward-looking statements could be affected by pricing and policy term trends; increased competition; the impact of acts of terrorism and acts of war; greater frequency or severity of unpredictable catastrophic events; negative rating agency actions; the adequacy of our loss reserves; the Company or its subsidiaries becoming subject to significant income taxes in the United States or elsewhere; changes in regulations or tax laws; changes in the availability, cost or quality of reinsurance or retrocessional coverage; adverse general economic conditions; and judicial, legislative, political and other governmental developments, as well as management’s response to these factors, and other factors identified in our filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We are under no obligation (and expressly disclaim any such obligation) to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number	Description
99.1	2013 Global Loss Triangles report.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG
Dated: June 23, 2014	By:	/s/ Wesley D. Dupont
	Name:	Wesley D. Dupont
	Title:	Executive Vice President & General Counsel

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EXHIBIT INDEX

Exhibit Number	Description
99.1	2013 Global Loss Triangles report.

EX-99.1

Exhibit 99.1

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

2013 GLOBAL LOSS TRIANGLES

Global Loss Development Triangle Cautionary Language

This report is for informational purposes only and is current only as of December 31, 2013. Allied World Assurance Company Holdings, AG (“Allied World”, the “Company”, “we”, “us” or “our”) is under no obligation (and expressly disclaims any such obligation) to update or revise this report, whether as a result of new information, future events or otherwise. Nothing contained in this report is or should be relied upon as a promise or representation as to the future. Although the loss development patterns disclosed in this report are an important factor in the process used to estimate loss reserve requirements, they are not the only factors considered in establishing reserves. The process for establishing reserves is subject to considerable variability and requires the use of informed estimates and judgments. Important details, such as specific loss development expectations for particular contracts, years or events, cannot be developed solely by analyzing the information provided in this report. In addition to analyzing loss development data, management incorporates additional information into the reserving process, such as pricing for insurance and reinsurance products as well as current market conditions. Readers must keep these and other qualifications more fully described in this report in mind when reviewing this information. Information presented in this report may differ materially from that reported in the Company’s financial statements prepared in accordance with accounting principles generally accepted in the United States due to differences in foreign exchange rates, exclusions, the impact of premium adjustments and other adjustments. This report is a supplement to the Company’s financial disclosures and should be read in conjunction with the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents on file with the U.S. Securities and Exchange Commission (the “SEC”). This report shall not be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this report reflect the Company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, the Company’s forward-looking statements could be affected by pricing and policy term trends; increased competition; the adequacy of our loss reserves; negative rating agency actions; greater frequency or severity of unpredictable catastrophic events; the impact of acts of terrorism and acts of war; the Company or its subsidiaries becoming subject to significant income taxes in the United States or elsewhere; changes in regulations or tax laws; changes in the availability, cost or quality of reinsurance or retrocessional coverage; adverse general economic conditions; and judicial, legislative, political and other governmental developments, as well as management’s response to these factors, and other factors identified in the Company’s filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company is under no obligation (and expressly disclaims any such obligation) to update or revise any forward-looking statement that may be made from time to time, whether as a result of new information, future developments or otherwise.

ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG

2013 GLOBAL LOSS TRIANGLES

Table of Contents

	Page
I. EXECUTIVE SUMMARY		1
– Overview		1
– Limitations of the Reserving Processes		3
– Treaty Year Projections		5
II. RECONCILIATION OF GLOBAL LOSS TRIANGLES TO DECEMBER 31, 2013 FINANCIAL STATEMENTS		6
III. GLOBAL LOSS TRIANGLES		7
– Basis of Presentation		7
– Description of Data Presented		8
– Large Losses		8
– GLT Class Details		9
– Property Insurance (Gross of Ceded Reinsurance)		13
– General Casualty Insurance (Gross of Ceded Reinsurance)		14
– Professional Liability Lines Insurance (Gross of Ceded Reinsurance)		15
– Healthcare Insurance (Gross of Ceded Reinsurance)		16
– Specialty Lines Insurance (Gross of Ceded Reinsurance)		17
– Property Insurance (Net of Ceded Reinsurance)		18
– General Casualty Insurance (Net of Ceded Reinsurance)		19
– Professional Liability Lines Insurance (Net of Ceded Reinsurance)		20
– Healthcare Insurance (Net of Ceded Reinsurance)		21
– Specialty Lines Insurance (Net of Ceded Reinsurance)		22
– Property Catastrophe Reinsurance (Gross of Ceded Reinsurance)		23
– Property Per Risk Reinsurance (Gross of Ceded Reinsurance)		24
– General Casualty Reinsurance (Gross of Ceded Reinsurance)		25
– Professional Liability Lines Reinsurance (Gross of Ceded Reinsurance)		26
– Specialty Lines Reinsurance (Gross of Ceded Reinsurance)		27
– Property Catastrophe Reinsurance (Net of Ceded Reinsurance)		28
– Property Per Risk Reinsurance (Net of Ceded Reinsurance)		29
– General Casualty Reinsurance (Net of Ceded Reinsurance)		30
– Professional Liability Lines Reinsurance (Net of Ceded Reinsurance)		31
– Specialty Lines Reinsurance (Net of Ceded Reinsurance)		32
– Insurance (Gross of Ceded Reinsurance) Premium/Loss Summary		33
– Insurance (Net of Ceded Reinsurance) Premium/Loss Summary		34
– Reinsurance (Gross of Ceded Reinsurance) Premium/Loss Summary		35
– Reinsurance (Net of Ceded Reinsurance) Premium/Loss Summary		36
IV. SELECTED EXCERPTS FROM ALLIED WORLD’S 2013 10-K DISCLOSURE		37
V. GLOSSARY		43

I. EXECUTIVE SUMMARY

Overview

A critical component of financial reporting for insurance and reinsurance companies is to accurately estimate potential losses and associated loss expenses on risks that have been insured or reinsured. This report is Allied World’s release of its Global Loss Triangles (“GLTs”) as of December 31, 2013. For your convenience, we have included a glossary beginning on page 43 of selected insurance and reinsurance terms.

We establish a reserve for losses and loss expenses to cover our estimated liability for the payment of all losses and loss expenses incurred with respect to earned premiums on the policies and treaties that we write. This reserve is a balance sheet liability representing estimates of losses and loss expenses we are required to pay for insured or reinsured claims that have occurred as of or before the balance sheet date.

The process of establishing loss reserves can be complex and is subject to considerable variability as it requires the use of judgment regarding numerous items, including future litigation trends, future inflation trends, new laws and regulations, attachment points and timing of payments. Actuarial estimates of these reserves are subject to potential errors of estimation, which could be significant, as they are based upon the outcomes of future events. The estimates are even more difficult for a company such as Allied World, as many of our casualty lines of business have relatively high attachment points (often exceeding $100 million) and relatively high net limits (with $25 million being a typical maximum). Those characteristics make some of our casualty lines subject to claims that are very low in frequency (the number of actual claims), but very high in severity (the average claim size). The combination of low frequency and high severity exacerbates the difficulty in establishing loss reserves for Allied World. We caution that an attempt to evaluate our loss reserves using exclusively the data presented in this report could be misleading.

The reserve for losses and loss expenses is comprised of two main elements: outstanding loss reserves, also known as “case reserves,” and reserves for losses incurred but not reported (“IBNR”). Outstanding loss reserves relate to known claims and represent management’s best estimate of the likely loss settlement cost. Thus, there is a significant amount of estimation involved in determining the likely loss payment. IBNR reserves require judgment because they relate primarily to unreported events that, based on industry information, management’s experience and actuarial evaluation, can reasonably be expected to have occurred and are reasonably likely to result in a loss to the Company. IBNR reserves also relate to estimated development of reported events that based on industry information, management’s experience and actuarial evaluation, can reasonably be expected to reach our attachment point and are reasonably likely to result in a loss to the Company.

IBNR is the estimated liability for (1) claims that have occurred but have not yet been reported as well as (2) changes in the values of claims that have been reported to us but are not yet settled. Each claim is settled individually based upon its merits and it is not unusual for a claim to take years after being reported to settle, especially if legal action is involved. As a result, reserves for losses and loss expenses include significant estimates for IBNR reserves.

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The reserve for IBNR is estimated by management for each line of business based on various factors, including underwriters’ expectations about loss experience, actuarial analysis, comparisons with the results of industry benchmarks and loss experience to date. The reserve for IBNR is calculated as the ultimate amount of losses and loss expenses less cumulative paid losses and loss expenses and case reserves. Our actuaries employ generally accepted actuarial methodologies to determine estimated ultimate loss reserves.

When estimating IBNR reserves, we segregate the Company’s insurance and reinsurance loss and exposure data into over 140 classes in total. Within each class, the business is further segregated by treaty year, accident year or report year. Professional liability and healthcare lines of business are reviewed on a report year basis due to the claims-made nature of the underlying contracts. Our general casualty insurance business is a mixture of claims-made and loss-occurring contracts. Since the Company’s formation in November 2001, 62% of our gross earned premiums and 65% of our net earned premiums have been associated with occurrence policies for our general casualty insurance business.

Generally, initial actuarial estimates of IBNR reserves not related to a single event (such as a catastrophe) are based upon the expected loss ratio method applied to each class of business. Actual paid losses and case reserves are subtracted from the expected ultimate losses to derive the IBNR reserves. The initial expected loss ratio used in the expected loss ratio method involve managerial judgments and are based upon historical information for the class of business, which includes historic loss ratios, market conditions, changes in pricing, policy terms and conditions, peer analysis, underwriting changes, changes in claims emergence and other factors that may influence expected ultimate losses. Over time, the actuarial estimates for our non-property lines of business generally become a blend of the Bornhuetter-Ferguson reported loss method (the “B-F method”) and the expected loss ratio method. The B-F method incorporates actual reported loss data and expected unreported losses, which is a function of the initial expected loss ratio and the expected loss emergence pattern, to determine an estimate of ultimate losses. The B-F method is often appropriate for lines of business where there is limited actual loss data and/or a relatively less stable pattern of loss emergence. For additional details on the B-F method, see “IV. Selected Excerpts from Allied World’s 2013 10-K Disclosure – Expected Loss Ratio Method” and “– B-F Method.”

These actuarial methods may be inappropriate for lines of business with very low frequency and high severity and in certain specific situations, such as catastrophe losses. In such situations, specific knowledge of the open claims, the underlying exposures, ceded reinsurance, litigation trends, the types of coverages involved and the changes in the frequency or severity of the claim may be used to establish reserves.

Multiple estimates of ultimate losses using a variety of actuarial methods are calculated for many of our classes of business for each year of loss experience. Our actuaries review each class of business and each year of loss experience and determine the most appropriate point estimate based upon the characteristics of the particular class of business and other relevant

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factors as described above. Once our actuaries make their determination of the most appropriate point estimate for each class of business and for each year of loss experience, both gross and net of reinsurance, this information is aggregated and presented to management for consideration in establishing the recorded reserves for losses and loss expenses.

Limitations of the Reserving Processes

Reserving actuaries, especially in personal lines and mid-market commercial lines companies, often employ standard actuarial loss development methods to project ultimate losses from triangles of paid and reported losses. These methods rely on an assumption that losses develop consistently from one year to the next, and for the expected loss ratio and B-F methods, on the assumption that an initial expected loss ratio and expected emergence pattern can be accurately selected. However, Allied World writes complex lines of business, including excess casualty insurance and reinsurance, which often do not have the consistent patterns of reported losses that personal lines and mid-market commercial lines companies do.

Projections of ultimate losses require a significant amount of estimation and judgment based on a variety of factors. We strongly caution against any assumption that standard loss projection techniques applied mechanically can alone be used to estimate ultimate losses for our data as the outcome of such a simplistic approach would lead to misleading results and inaccurate conclusions. Reasons to avoid simplistic projections include:

• Allied World has only been in existence since November 2001 and many of our GLTs lack sufficient actuarial credibility to project ultimate losses and do not have the history to accurately estimate the development of losses beyond ten years.

• As many of our casualty lines can have relatively low frequency and relatively high severity losses, the absence or emergence of only a few losses can distort our paid and reported GLTs.

• Our U.S. direct insurance business has been generally growing faster than our international direct insurance business. The difference in the business mix between these two insurance businesses and the lower attachment point profile of the U.S. business can cause historical loss development not to be appropriate for future loss development.

• Some of our largest reinsurance treaties have special characteristics, such as loss corridors, annual aggregate deductibles or swing-rated premiums that cannot be considered in a simplistic aggregate projection.

• We have had changes in our underwriting philosophy over time, exiting or paring back some classes of business and in other classes changing coverage terms and conditions.

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• Losses develop differently for different classes of business. The aim of the GLTs contained herein is to present our loss development experience in an informative format, while protecting proprietary Company information. Accordingly, we do not show our 140+ reserving classes, but rather have aggregated them into ten classes, which represent different geographies, pricing environments, legislative climates and policy forms and which will not be as homogeneous as our actual reserving classes would be if reported individually.

• Paid loss development patterns are considerably longer than the corresponding reported loss development patterns and can produce for many of our classes of business extremely volatile indications, particularly within the first several years of development.

• For several classes of business, pricing conditions have changed in recent years. The extrapolation of losses and loss expense ratios from prior periods to current periods would not be appropriate.

In addition to these factors, financial turmoil in a particular geography or the effects of inflation (as discussed in more detail below) could adversely impact our ultimate losses and cause our projections and judgments regarding our expected loss reserves to differ materially from the ultimate losses we may incur.

Financial and Housing Markets – Worldwide financial and housing markets have experienced volatility and disruption in recent years. As a result of the global credit crisis, the following reserving classes have been impacted:

• direct insurance professional liability lines (primarily the 2007 and 2008 report years), and

• reinsurance professional liability lines (primarily the 2006 through 2008 treaty years).

There continues to be uncertainty around the ultimate losses for the years referenced above. This is mainly attributable to the higher volume of reported claims and the higher proportion of open claims for these years compared to earlier years at the same stage of development. In addition, these reported claims have caused higher reported losses and ALAE ratios for these years compared to earlier years at similar stages of development. As a result, the ultimate loss development patterns on these years may differ from prior years. The uncertainty is increased by the fact that we have relatively high average attachment points for many of these potential credit crisis-related claims for our direct insurance business and by the fact that we often provide D&O side A cover. On side A cover, we are required to provide coverage to directors and officer for claims alleging negligence or malfeasance if such claims are not indemnified by the insured.

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Our reserves for these lines of business are based on a detailed analysis of all open claims that considers attachment points, exposed limits, coverage provided and litigation trends as well as quarterly, in-depth discussions with members of our claims department and underwriting staff.

Inflation – Losses and loss expense reserves can be impacted by social and judicial inflation. Higher than expected inflation can negatively impact the costs of claims as it may cause an increase in frequency (the number of actual claims) and severity (the average claim size). Though our reserving techniques factor in inflation through the use of expected loss ratios derived from our pricing models, which consider the effects of inflation, and through the use of industry loss development patterns that go back as far as 1984, losses and loss expense reserves can be impacted by unexpected changes in inflation rates. We do not explicitly account for excessive inflation in our reserves.

Treaty Year Projections

Data organized by treaty year assigns claims and premiums to the year in which the assumed reinsurance contract incepted. As such, a treaty year may cover claims spanning several accident years. This has two primary implications for estimating ultimate loss reserves. First, the payment and reporting patterns are generally slower to develop than for the data presented by accident year or report year. This means that it is even more critical that premium-based reserving methods, such as the expected loss ratio method or the B-F method, are used for the more recent years rather than loss development methods that can be distorted by small movements in actual paid or reported loss activity due to the application of large loss development factors. Second, treaty years for which premium is not fully earned require an adjustment to the indicated reserves to reflect only the portion of the ultimate treaty year losses that are associated with losses that have occurred prior to the evaluation date. This is typically done by developing an ultimate loss ratio estimate for the full treaty year and applying this loss ratio to the earned premiums from the treaty year.

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II. RECONCILIATION OF GLOBAL LOSS TRIANGLES TO DECEMBER 31, 2013 FINANCIAL STATEMENTS

The tables below provide a reconciliation of our presented GLTs to our audited financial statements as of and for the year ended December 31, 2012 and 2013, respectively.

(Expressed in U.S. dollars in thousands)

Paid Losses and Paid LAE in 2012 Calendar Year
Consolidated GLTs – net paid losses and ALAE1	$	798,111
Paid losses and paid ALAE from excluded catastrophes		37,071
Paid ULAE		26,494
Foreign exchange and other		(709	)
Paid losses and paid LAE in 2012 calendar year per 10-K	$	860,967
Paid Losses and Paid LAE in 2013 Calendar Year
Consolidated GLTs – net paid losses and ALAE1	$	975,101
Paid losses and paid ALAE from excluded catastrophes		82,526
Paid ULAE		32,904
Foreign exchange and other		(876	)
Paid losses and paid LAE in 2013 calendar year per 10-K	$	1,089,656
Incurred Losses and Incurred LAE in 2012 Calendar Year
Consolidated GLTs – net reported losses and ALAE1	$	894,216
Reported losses and reported ALAE from excluded catastrophes		71,437
Reported ULAE		26,494
Change in IBNR		147,319
Foreign exchange and other		(202	)
Incurred losses and incurred LAE in 2012 calendar year per 10-K	$	1,139,264
Incurred Losses and Incurred LAE in 2013 Calendar Year
Consolidated GLTs – net reported losses and ALAE1	$	1,017,327
Reported losses and reported ALAE from excluded catastrophes		31,051
Reported ULAE		32,904
Change in IBNR		37,395
Foreign exchange and other		4,565
Incurred losses and incurred LAE in 2013 calendar year per 10-K	$	1,123,242

1. Excludes losses from the following catastrophes: 2004 Hurricanes/Tropical Storms Charlie, Frances, Jeanne and Ivan; 2005 Hurricanes/Tropical Storms Katrina, Rita and Wilma; 2008 Hurricanes/Tropical Storms Gustav and Ike; 2010 Chilean Earthquake; 2011 Japanese Earthquake/Tsunami; 2012 Superstorm Sandy.

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III. GLOBAL LOSS TRIANGLES

Basis of Presentation

For the basis of this presentation, we have split our data into ten classes of GLTs, five for our direct insurance business and five for our reinsurance business. They are listed below:

Direct Insurance Business	Reinsurance Business
•      Property	•      Property Catastrophe
•      General Casualty	•      Property Per Risk
•      Professional Liability Lines	•      General Casualty
•      Healthcare	•      Professional Liability Lines
•      Specialty Lines	•      Specialty Lines Reinsurance
•      Our direct insurance general casualty business contains a mix of claims-made, occurrence-reported and occurrence policy forms.

General Casualty

Distribution of Gross Premiums Written

Underwriting Year	Claims-Made			Occurrence- Reported			Occurrence			Total
2002		20.3	%		26.1	%		53.6	%		100.0	%
2003		16.6	%		30.0	%		53.4	%		100.0	%
2004		20.3	%		30.7	%		49.0	%		100.0	%
2005		14.4	%		35.2	%		50.4	%		100.0	%
2006		16.1	%		32.3	%		51.6	%		100.0	%
2007		16.5	%		35.5	%		48.0	%		100.0	%
2008		16.3	%		29.8	%		54.0	%		100.0	%
2009		10.9	%		22.1	%		67.0	%		100.0	%
2010		11.4	%		19.3	%		69.4	%		100.0	%
2011		11.0	%		15.1	%		73.9	%		100.0	%
2012		9.4	%		13.0	%		77.6	%		100.0	%
2013		8.5	%		10.8	%		80.7	%		100.0	%

• Our direct insurance specialty lines business includes aviation, surety and trade credit.

• Our reinsurance business classified as “specialty lines reinsurance” includes accident and health, workers’ compensation catastrophe coverage, aviation, crop and marine.

• Our reinsurance business is presented separately from our direct insurance business as we show the reinsurance classes on a treaty year basis. Many reinsurance treaties do not provide sufficient detail to split losses and loss adjustment expenses accurately by accident year or report year.

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• Our ten classes were selected to create categories that were relatively homogeneous yet were not so small as to have insufficient actuarial credibility.

• Our GLTs are presented in thousands of U.S. dollars, reflecting conversions from local currencies based upon the date on which the transactions were entered into the Company’s systems.

Description of Data Presented

For each class of business, earned premiums are presented both gross and net of external reinsurance, with intercompany reinsurance transactions not being reflected in the GLTs. For classes of business within our reinsurance lines, these premiums are presented on a treaty year basis. For all other classes of business, the net earned premiums are presented on a calendar year basis. GLTs that show cumulative paid losses and ALAE, gross and net of reinsurance, are presented for each class of business. In addition, we present GLTs of cumulative reported losses and ALAE (paid plus case reserves), gross and net of reinsurance, for each class of business. For the reinsurance classes of business, the GLTs are presented on a treaty year basis. For direct insurance business, property classes of business are presented on an accident year basis. Our general casualty classes of business are a blend of policies where losses can be triggered by either report date or accident date, so the paid and reported losses are a blend of report year and accident year data. The remaining casualty classes of business, including professional liability and healthcare, are presented on a report year basis. These conventions match the standard industry reserving practices for reinsurance and direct insurance, respectively.

Case reserves for Allied World’s reinsurance classes are generally established based upon reports received from ceding companies as we generally “follow their fortunes.” Additional case reserves may be established by Allied World to reflect our estimated ultimate cost of a loss. Any such additional case reserves have been included in the presented reinsurance GLTs.

The premiums in our reinsurance lines are often based upon estimates by the ceding companies. At the end of the treaty year, these estimates will be replaced by actual premiums. In addition, some of our reinsurance treaties may have premiums that are swing-rated subject to reinstatement premiums. The presented premium data is subject to future adjustments, either upwards or downwards, based upon these factors.

Large Losses

Loss development associated with the following six groups of catastrophic losses have been excluded from the GLTs for all lines except for property catastrophe reinsurance: (1) 2004 hurricanes, (2) 2005 hurricanes, (3) 2008 hurricanes, (4) 2010 Chilean Earthquake, (5) 2011 Japanese Earthquake/Tsunami and (6) 2012 Superstorm Sandy. These events have been excluded from the GLTs due to their magnitude in order to avoid distortions in the development factors and indicated reserve levels. Reserves for these events are not based on aggregate

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development statistics, but rather on ground-up, exposure-based assessments reflecting information provided by insureds and cedents on an insurance policy-by-policy and reinsurance contract-by-contract basis. Separate information is provided on these catastrophic events including gross and net paid losses, reported losses and IBNR as of December 31, 2013.

GLT Class Details

Insurance Lines of Business

Property – Our property insurance GLTs are shown on both a gross and net of reinsurance basis (see pages 13 and 18). The vast majority of the ceded reinsurance we have purchased for our direct property class of business is written as quota share reinsurance, with a smaller portion written as facultative reinsurance. We have not removed losses associated with recoveries from any catastrophe covers as we have excluded major catastrophes already from the data. The major catastrophes removed from our property insurance GLTs, as well as from our “property per risk reinsurance” and our “specialty lines reinsurance” GLTs discussed below, include:

• 2004 – Hurricanes/Tropical Storms Charlie, Frances, Jeanne and Ivan;

• 2005 – Hurricanes/Tropical Storms Katrina, Rita and Wilma;

• 2008 – Hurricanes/Tropical Storms Gustav and Ike;

• 2010 – Chilean Earthquake;

• 2011 – Japanese Earthquake/Tsunami; and

• 2012 – Superstorm Sandy.

It should be noted that we removed all property losses associated with these events, even after such storms may have weakened and moved inland. For our property insurance GLTs, the total amounts excluded from these storms are as follows:

	Gross				Net of Reinsurance
	Paid		Reported		Paid		Reported
	(Dollars in Millions)				(Dollars in Millions)
2004 Events	$	170.1	$	170.5	$	148.5	$	148.7
2005 Events	$	458.4	$	458.8	$	190.0	$	190.2
2008 Events	$	97.9	$	97.9	$	62.0	$	62.0
2010 Events	$	65.9	$	65.9	$	50.9	$	50.9
2011 Events	$	43.6	$	52.8	$	30.6	$	37.1
2012 Events	$	81.0	$	117.4	$	64.7	$	93.3

Our property book of business has shifted over time. Over the last several years, we have de-emphasized energy classes of business, which included such industry classes as mining, chemical plants, pulp and paper manufacturing and refiners. In addition, our Bermuda property book of business (which is included in the property insurance GLTs) has evolved from largely being a primary insurance account based book of business to where we now write many accounts on an excess basis.

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General Casualty – Our general casualty insurance GLTs are shown on both a gross and net of reinsurance basis (see pages 14 and 19). Our Bermuda and European casualty books of business are comprised largely of Fortune 1000-type accounts with generally high attachment points with medians between $80 million and $100 million. Historically, about 61% to 63% of the earned premiums have come from occurrence policies. This percentage grew to 81% in 2013 as our business mix has shifted to more occurrence business as we expanded our U.S. underwriting platform. The vast majority of the ceded reinsurance we have purchased for the casualty class of business has been either quota share reinsurance or surplus treaty reinsurance. The general casualty book has changed over time, with pharmaceutical and energy classes being de-emphasized in Bermuda and with the business underwritten in the United States (which generally has a lower attachment point profile) shrinking in the 2005-2007 calendar years and growing in the 2008-2013 calendar years. In previous releases of our GLTs, trade credit was included in general casualty. It is now part of our newly-created specialty lines category.

Professional Liability Lines – Our professional liability lines insurance GLTs are shown on both a gross and net of reinsurance basis (see pages 15 and 20). Professional liability lines include directors and officers liability, errors & omissions liability, D&O side A cover, employment practices liability insurance, crime and fiduciary liability business. Similar to our casualty lines of business, our Bermuda and European professional liability lines are comprised largely of Fortune 1000 and FTSE 1000-type accounts with generally high attachment points with medians between $80 million and $100 million. It is not uncommon for the Company to “ventilate” an account, which means the Company underwrites two excess layers with differing attachment points. Our U.S. professional liability book has a very different profile, with a portion of the business underwritten on a primary basis for smaller, non-Fortune 1000 accounts. Common classes include insurance agencies, psychologists/counselors and smaller law firms. Our professional liability lines book of business, excluding crime, is written on claims-made and occurrence-reported basis and virtually none of this business is written on an occurrence basis (regardless of where it is written). Crime insurance is written on a losses discovered basis.

Healthcare – Our healthcare insurance GLTs are shown on both a gross and net of reinsurance basis (see pages 16 and 21). Our healthcare book of business is written on a claims-made and occurrence-reported basis and has virtually no business written on occurrence policy forms. The Bermuda healthcare group writes gross lines of up to $25 million, with average attachment points of around $45 million. This business is largely comprised of large hospitals, but does include managed care organizations and healthcare systems. The U.S. healthcare business has a much lower attachment point profile than the international book of business, with much of the U.S. business being written on a primary basis. It includes smaller hospitals and hospital systems, managed care organizations and medical facilities such as home care providers, specialized surgery and rehabilitation centers, and outpatient clinics. Our Bermuda business also writes some accounts on a primary basis, although typically over a large deductible.

Specialty Lines – Our specialty lines insurance GLTs are shown on both a gross and net of reinsurance basis (see pages 17 and 22). Our specialty lines book includes aviation, surety and trade credit lines of business. Our aviation line writes a combination of airlines, aerospace and general aviation. It writes gross lines up to $85 million and net lines up to $3 million. Our surety line targets contractors and writes (on a per bond basis) gross limits up to $20 million and

-10-

net lines up to $10 million. Our trade credit line targets exporters, importers, financial institutions, contractors and investors. This line writes some multi-year policies. The average duration of in-force policies is 2.5 years. Our average gross line in trade credit is $3.6 million and our average net line is $2.4 million.

Reinsurance Lines of Business

Property Catastrophe – Our property catastrophe reinsurance GLTs are shown on both a gross and net of reinsurance basis (see pages 23 and 28). This business is excess-of-loss property catastrophe reinsurance. Typically, it has a relatively short tail.

Property Per Risk – Our property per risk reinsurance GLTs are shown on both a gross and net of reinsurance basis (see pages 24 and 29). This line contains our entire property reinsurance book of business, excluding property catastrophe coverages, and is written as either excess-of-loss reinsurance or quota share reinsurance.

General Casualty – Our general casualty reinsurance GLTs are shown on both a gross and net of reinsurance basis (see pages 25 and 30). This business is essentially comprised of any business that does not fit into the other casualty classes. It is largely umbrella casualty business that contains some workers’ compensation business. This business can be written as either excess-of-loss reinsurance or quota share reinsurance.

Professional Liability Lines – Our professional liability lines reinsurance GLTs are shown on both a gross and net of reinsurance basis (see pages 26 and 31). This business is largely written on a claims-made basis. Lines of business include employment practices liability insurance, medical malpractice, directors and officers, errors and omissions and miscellaneous professional classes and transactional risk liability. Some of our larger treaties can have complex structures, including swing-rated premiums, loss corridors and annual aggregate deductibles. This business is written as either excess-of-loss reinsurance or quota share reinsurance.

Specialty Lines – Our specialty lines reinsurance GLTs are shown on both a gross and net of reinsurance basis (see pages 27 and 32). This business is a mixture of miscellaneous lines including accident and health (which is predominantly catastrophe driven), workers’ compensation catastrophe, aviation, crop and marine. The marine treaties were impacted by various hurricanes (specifically Ivan, Katrina, Rita, Ike and Gustav) which went through the Gulf of Mexico.

-11-

For our specialty lines reinsurance and property per risk GLTs, the total amounts excluded from the 2004, 2005, 2008, 2010, 2011 and 2012 events discussed above are as follows:

	Gross				Net of Reinsurance
	Paid		Reported		Paid		Reported
	(Dollars in Millions)				(Dollars in Millions)
2004 Events	$	38.4	$	38.6	$	38.4	$	38.6
2005 Events	$	93.9	$	94.7	$	86.9	$	87.6
2008 Events	$	1.6	$	2.8	$	1.6	$	2.8
2010 Events	$	0.1	$	0.8	$	0.1	$	0.8
2011 Events	$	0.1	$	0.2	$	0.1	$	0.2
2012 Events	$	19.9	$	28.2	$	19.9	$	28.2

-12-

December 2013 Global Loss Triangles - Insurance Segment

Excluding large losses

U.S. dollars in thousands

Property Insurance (Gross of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		2,584			29,354			46,287			51,590			56,582			56,687			56,776			56,675			56,700			56,701			56,701			56,701
2003		50,572			136,299			198,801			217,328			218,048			217,531			221,698			221,688			221,846			221,814			221,834
2004		38,251			153,141			203,006			217,517			229,205			232,011			233,997			234,829			237,674			238,234
2005		91,198			228,634			308,207			354,253			366,892			365,434			367,337			365,380			371,504
2006		30,040			103,621			172,546			201,132			208,659			210,277			212,916			218,960
2007		43,151			129,076			169,655			186,261			191,756			199,710			214,911
2008		75,528			155,973			198,875			210,168			218,452			223,365
2009		24,044			64,420			74,513			77,316			80,185
2010		44,677			107,035			128,647			142,847
2011		52,142			115,929			167,463
2012		21,849			55,504
2013		37,145
Reported Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		18,005			55,432			58,559			59,169			57,437			56,848			57,987			56,707			56,700			56,701			56,701			56,701
2003		146,467			208,054			228,434			232,111			227,106			224,146			222,856			222,651			222,550			222,481			222,501
2004		132,453			223,557			246,425			247,612			244,839			239,798			238,060			235,425			238,232			238,809
2005		224,245			353,712			382,922			384,183			382,139			370,420			368,929			366,287			371,875
2006		157,140			225,124			235,681			222,453			219,524			215,327			217,148			222,291
2007		189,533			227,570			227,509			220,583			221,004			220,826			223,190
2008		263,049			265,851			240,547			229,376			226,406			224,528
2009		89,871			89,436			88,222			85,366			82,359
2010		114,296			156,419			155,810			151,297
2011		156,249			188,552			186,102
2012		72,725			81,044
2013		91,583
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		9	%		28	%		30	%		30	%		29	%		29	%		30	%		29	%		29	%		29	%		29	%		29	%
2003		30	%		43	%		47	%		48	%		47	%		46	%		46	%		46	%		46	%		46	%		46	%
2004		23	%		40	%		44	%		44	%		43	%		42	%		42	%		42	%		42	%		42	%
2005		47	%		74	%		80	%		81	%		80	%		78	%		77	%		77	%		78	%
2006		36	%		51	%		53	%		50	%		50	%		49	%		49	%		50	%
2007		45	%		54	%		54	%		52	%		52	%		52	%		53	%
2008		74	%		74	%		67	%		64	%		63	%		63	%
2009		33	%		33	%		32	%		31	%		30	%
2010		49	%		67	%		67	%		65	%
2011		69	%		84	%		82	%
2012		28	%		31	%
2013		32	%

Accident Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		196,237		56,701		—		56,701		—		56,701		28.9	%		—
2003		483,719		221,834		667		222,501		164		222,665		46.0	%		831
2004		565,327		238,234		574		238,809		101		238,909		42.3	%		675
2005		476,481		371,504		371		371,875		90		371,965		78.1	%		461
2006		441,138		218,960		3,331		222,291		675		222,966		50.5	%		4,006
2007		423,468		214,911		8,279		223,190		1,057		224,247		53.0	%		9,337
2008		357,588		223,365		1,163		224,528		212		224,740		62.8	%		1,375
2009		272,873		80,185		2,174		82,359		1,066		83,426		30.6	%		3,241
2010		233,716		142,847		8,450		151,297		1,343		152,640		65.3	%		9,793
2011		225,599		167,463		18,639		186,102		12,889		198,992		88.2	%		31,529
2012		260,347		55,504		25,539		81,044		11,867		92,910		35.7	%		37,406
2013		288,689		37,145		54,438		91,583		45,552		137,136		47.5	%		99,990
Total		4,225,181		2,028,653		123,628		2,152,281		75,016		2,227,297		52.7	%		198,644

-13-

December 2013 Global Loss Triangles - Insurance Segment

U.S. dollars in thousands

General Casualty Insurance (Gross of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		0			0			185			464			2,848			4,691			5,591			6,574			7,802			8,662			9,887			32,509
2003		0			461			16,019			18,500			29,401			55,140			57,458			57,463			57,487			57,534			58,354
2004		0			21			90			634			5,507			8,516			19,470			24,754			31,861			35,183
2005		15			26,548			31,396			63,544			65,785			118,117			118,386			120,531			121,513
2006		—			274			2,591			34,249			84,696			108,738			108,776			108,837
2007		107			7,235			9,707			13,553			26,963			29,224			30,500
2008		1,319			8,351			26,339			47,500			53,168			56,203
2009		309			8,309			36,402			60,422			72,065
2010		1,045			61,109			132,702			141,538
2011		8,380			28,876			66,220
2012		8,699			49,617
2013		15,162
Reported Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		1,429			618			989			552			6,299			15,616			16,506			17,369			23,361			22,058			32,290			45,256
2003		23			13,124			25,852			33,579			58,980			59,141			57,667			57,575			57,537			57,534			58,484
2004		1,007			540			816			915			7,822			24,831			25,154			34,193			35,432			43,150
2005		30,852			109,619			113,339			119,923			124,573			124,781			123,362			149,613			137,571
2006		165			30,097			39,318			90,005			92,725			108,758			108,816			110,876
2007		4,131			15,419			15,970			32,500			37,670			38,733			37,800
2008		8,193			26,768			52,114			52,723			56,855			70,897
2009		1,876			35,225			49,792			70,495			83,552
2010		70,055			131,974			159,214			165,337
2011		34,513			109,349			160,328
2012		57,620			91,112
2013		56,177
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		2	%		1	%		1	%		1	%		7	%		18	%		19	%		20	%		27	%		25	%		37	%		51	%
2003		0	%		5	%		10	%		13	%		23	%		23	%		22	%		22	%		22	%		22	%		23	%
2004		0	%		0	%		0	%		0	%		2	%		7	%		8	%		10	%		11	%		13	%
2005		10	%		37	%		38	%		40	%		42	%		42	%		41	%		50	%		46	%
2006		0	%		11	%		14	%		33	%		34	%		39	%		40	%		40	%
2007		2	%		6	%		6	%		12	%		14	%		15	%		14	%
2008		3	%		11	%		21	%		22	%		23	%		29	%
2009		1	%		13	%		19	%		27	%		32	%
2010		24	%		45	%		55	%		57	%
2011		10	%		33	%		48	%
2012		14	%		22	%
2013		10	%

Accident Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		88,051		32,509		12,747		45,256		11,785		57,041		64.8	%		24,532
2003		257,017		58,354		130		58,484		28,982		87,466		34.0	%		29,112
2004		332,389		35,183		7,967		43,150		41,246		84,396		25.4	%		49,213
2005		297,511		121,513		16,058		137,571		48,915		186,486		62.7	%		64,973
2006		275,405		108,837		2,039		110,876		44,440		155,316		56.4	%		46,479
2007		264,680		30,500		7,300		37,800		53,405		91,204		34.5	%		60,705
2008		243,673		56,203		14,694		70,897		78,658		149,555		61.4	%		93,352
2009		265,068		72,065		11,487		83,552		106,400		189,951		71.7	%		117,886
2010		290,498		141,538		23,799		165,337		128,242		293,579		101.1	%		152,041
2011		333,193		66,220		94,108		160,328		154,978		315,306		94.6	%		249,086
2012		410,539		49,617		41,495		91,112		220,576		311,688		75.9	%		262,071
2013		540,110		15,162		41,015		56,177		325,919		382,096		70.7	%		366,934
Total		3,598,133		787,700		272,840		1,060,540		1,243,544		2,304,084		64.0	%		1,516,384

-14-

December 2013 Global Loss Triangles - Insurance Segment

U.S. dollars in thousands

Professional Liability Lines Insurance (Gross of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		—			10			61			5,225			13,909			45,884			59,860			59,930			59,944			59,984			62,538			62,538
2003		20			80			603			802			6,002			16,936			17,238			26,397			26,479			27,620			27,634
2004		15			683			7,406			29,477			30,403			39,004			48,452			48,571			48,702			48,721
2005		95			3,328			7,370			23,528			24,320			44,267			44,547			44,851			66,526
2006		296			6,850			44,815			59,330			88,030			97,134			111,154			121,125
2007		1,401			12,296			41,310			66,992			77,189			91,900			97,010
2008		2,750			22,943			46,656			103,602			162,592			193,830
2009		6,051			31,866			52,805			68,042			91,771
2010		9,628			43,547			70,837			97,257
2011		15,377			70,623			147,005
2012		17,676			76,777
2013		11,317
Reported Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		—			2,010			7,062			23,775			28,000			47,706			60,648			59,930			59,944			59,984			62,538			62,538
2003		60			243			858			6,255			33,468			41,460			44,712			42,038			43,597			43,237			50,759
2004		434			1,692			8,106			32,701			55,437			55,592			61,361			60,795			60,926			55,930
2005		3,931			15,625			48,363			51,426			50,281			58,062			58,190			59,136			67,575
2006		41,225			52,944			92,820			120,819			133,887			185,213			184,305			177,967
2007		11,223			47,137			111,624			143,673			135,584			124,918			129,073
2008		17,483			86,164			126,011			175,230			214,566			223,464
2009		20,752			62,075			79,290			92,922			160,122
2010		30,731			70,628			107,204			119,358
2011		47,123			120,843			195,734
2012		47,124			168,886
2013		45,848
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		0	%		3	%		12	%		40	%		47	%		80	%		102	%		101	%		101	%		101	%		105	%		105	%
2003		0	%		0	%		0	%		3	%		14	%		17	%		19	%		18	%		18	%		18	%		21	%
2004		0	%		1	%		3	%		10	%		17	%		17	%		19	%		19	%		19	%		17	%
2005		1	%		4	%		14	%		15	%		14	%		16	%		17	%		17	%		19	%
2006		10	%		13	%		23	%		31	%		34	%		47	%		47	%		45	%
2007		3	%		11	%		26	%		33	%		31	%		29	%		30	%
2008		4	%		19	%		28	%		38	%		47	%		49	%
2009		4	%		12	%		16	%		18	%		32	%
2010		6	%		15	%		23	%		25	%
2011		10	%		25	%		41	%
2012		9	%		32	%
2013		8	%

Accident Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		59,558		62,538		—		62,538		2,502		65,040		109.2	%		2,502
2003		237,656		27,634		23,125		50,759		22,648		73,407		30.9	%		45,773
2004		321,801		48,721		7,209		55,930		21,194		77,125		24.0	%		28,403
2005		352,174		66,526		1,050		67,575		23,258		90,834		25.8	%		24,308
2006		395,104		121,125		56,842		177,967		41,522		219,488		55.6	%		98,363
2007		431,009		97,010		32,063		129,073		64,945		194,017		45.0	%		97,008
2008		457,068		193,830		29,634		223,464		89,991		313,454		68.6	%		119,624
2009		506,027		91,771		68,350		160,122		152,981		313,103		61.9	%		221,331
2010		475,071		97,257		22,101		119,358		175,013		294,370		62.0	%		197,113
2011		475,741		147,005		48,729		195,734		186,994		382,728		80.4	%		235,723
2012		523,494		76,777		92,108		168,886		268,188		437,074		83.5	%		360,297
2013		568,088		11,317		34,531		45,848		346,551		392,399		69.1	%		381,082
Total		4,802,790		1,041,511		415,742		1,457,253		1,395,787		2,853,040		59.4	%		1,811,529

-15-

December 2013 Global Loss Triangles - Insurance Segment

U.S. dollars in thousands

Healthcare Insurance (Gross of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		—			835			2,158			3,209			5,533			8,008			8,020			8,023			8,025			8,025			8,027			8,027
2003		1			4,202			11,148			13,777			14,724			18,198			18,756			20,074			20,104			23,203			23,682
2004		2			852			5,892			9,738			12,694			13,229			13,379			13,786			15,325			16,432
2005		277			2,861			4,941			10,255			11,122			11,692			13,475			13,647			14,205
2006		381			4,009			5,864			12,839			16,034			19,443			22,350			22,403
2007		944			7,190			17,307			20,125			23,303			32,100			41,666
2008		793			9,776			18,469			28,147			34,461			37,679
2009		6,586			16,658			27,046			38,893			65,611
2010		2,139			12,035			32,320			51,166
2011		1,952			15,628			58,652
2012		1,917			19,552
2013		3,334
Reported Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		130			1,350			5,450			8,985			8,910			8,444			8,121			8,086			8,046			8,042			8,027			8,027
2003		345			11,153			20,246			20,723			20,529			23,625			23,160			23,420			23,793			25,905			24,294
2004		1,849			6,406			12,190			14,720			14,999			16,045			15,928			15,944			17,967			16,524
2005		5,566			11,649			15,497			14,435			13,384			13,710			14,639			15,443			15,803
2006		5,666			11,753			13,222			17,022			19,082			24,650			23,322			23,184
2007		3,773			15,281			24,537			37,172			39,822			45,816			44,230
2008		3,801			19,115			33,315			40,238			45,251			46,688
2009		10,999			29,590			48,289			72,916			97,231
2010		11,731			38,553			77,291			83,261
2011		10,479			50,825			100,134
2012		15,082			56,582
2013		10,764
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		0	%		3	%		14	%		23	%		22	%		21	%		20	%		20	%		20	%		20	%		20	%		20	%
2003		0	%		15	%		27	%		27	%		27	%		31	%		30	%		31	%		31	%		34	%		32	%
2004		2	%		5	%		10	%		12	%		12	%		13	%		13	%		13	%		15	%		14	%
2005		4	%		9	%		11	%		11	%		10	%		10	%		11	%		11	%		12	%
2006		4	%		8	%		9	%		11	%		13	%		16	%		16	%		15	%
2007		3	%		10	%		17	%		25	%		27	%		31	%		30	%
2008		2	%		11	%		20	%		24	%		27	%		27	%
2009		6	%		15	%		24	%		37	%		49	%
2010		5	%		17	%		35	%		37	%
2011		5	%		22	%		44	%
2012		6	%		24	%
2013		5	%

Accident Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		39,904		8,027		—		8,027		—		8,027		20.1	%		—
2003		76,140		23,682		612		24,294		3,773		28,067		36.9	%		4,384
2004		120,800		16,432		92		16,524		5,201		21,725		18.0	%		5,293
2005		136,577		14,205		1,597		15,803		5,792		21,595		15.8	%		7,389
2006		150,401		22,403		782		23,184		4,374		27,558		18.3	%		5,156
2007		147,720		41,666		2,563		44,230		7,528		51,758		35.0	%		10,092
2008		170,600		37,679		9,010		46,688		13,246		59,934		35.1	%		22,256
2009		197,314		65,611		31,620		97,231		18,320		115,551		58.6	%		49,940
2010		222,171		51,166		32,095		83,261		54,349		137,610		61.9	%		86,443
2011		228,445		58,652		41,482		100,134		44,330		144,464		63.2	%		85,812
2012		237,910		19,552		37,029		56,582		86,642		143,224		60.2	%		123,671
2013		233,745		3,334		7,429		10,764		127,843		138,607		59.3	%		135,273
Total		1,961,726		362,409		164,312		526,721		371,398		898,119		45.8	%		535,710

-16-

December 2013 Global Loss Triangles - Insurance Segment

U.S. dollars in thousands

Specialty Lines Insurance (Gross of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60		72		84		96		108		120		132		144
2002		—			—			—			—			—		—		—		—		—		—		—		—
2003		—			—			—			—			—		—		—		—		—		—		—
2004		—			—			—			—			—		—		—		—		—		—
2005		—			—			—			—			—		—		—		—		—
2006		—			—			—			—			—		—		—		—
2007		—			—			—			—			—		—		—
2008		—			—			—			—			—		—
2009		—			—			—			—			—
2010		—			—			—			—
2011		—			—			—
2012		—			202
2013		324
Reported Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60		72		84		96		108		120		132		144
2002		—			—			—			—			—		—		—		—		—		—		—		—
2003		—			—			—			—			—		—		—		—		—		—		—
2004		—			—			—			—			—		—		—		—		—		—
2005		—			—			—			—			—		—		—		—		—
2006		—			—			—			—			—		—		—		—
2007		—			—			—			—			—		—		—
2008		—			—			—			—			—		—
2009		—			—			—			—			—
2010		—			—			—			—
2011		—			—			—
2012		—			210
2013		420
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Accident Year	Months of Development
	12			24			36			48			60		72		84		96		108		120		132		144
2002
2003
2004
2005
2006
2007
2008
2009
2010		0	%		0	%		0	%		0	%
2011		0	%		0	%		0	%
2012		0	%		2	%
2013		1	%

Accident Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		—		—		—		—		—		—		0.0	%		—
2003		—		—		—		—		—		—		0.0	%		—
2004		—		—		—		—		—		—		0.0	%		—
2005		—		—		—		—		—		—		0.0	%		—
2006		—		—		—		—		—		—		0.0	%		—
2007		—		—		—		—		—		—		0.0	%		—
2008		—		—		—		—		—		—		0.0	%		—
2009		—		—		—		—		—		—		0.0	%		—
2010		153		—		—		—		61		61		40.0	%		61
2011		3,124		—		—		—		1,249		1,249		40.0	%		1,249
2012		13,763		202		8		210		5,984		6,193		45.0	%		5,992
2013		33,696		324		96		420		17,292		17,712		52.6	%		17,387
Total		50,736		526		104		630		24,586		25,216		49.7	%		24,690

-17-

December 2013 Global Loss Triangles - Insurance Segment

Excluding large losses

U.S. dollars in thousands

Property Insurance (Net of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		2,572			27,085			39,606			43,638			48,955			49,063			49,154			49,054			49,066			49,067			49,067			49,067
2003		49,208			118,094			163,485			175,303			175,715			175,379			179,293			179,283			179,378			179,392			179,412
2004		25,256			94,518			131,352			141,420			148,139			149,307			150,467			150,907			152,189			152,736
2005		40,373			99,880			138,713			161,091			165,024			165,290			166,393			164,486			167,270
2006		12,871			46,209			76,773			87,886			93,293			94,060			95,230			98,988
2007		20,325			62,106			79,511			86,918			89,091			94,204			101,836
2008		38,751			84,955			109,698			117,040			121,119			125,558
2009		15,993			42,846			50,242			53,634			54,424
2010		29,325			67,717			83,322			92,881
2011		31,764			79,873			119,623
2012		17,121			43,658
2013		29,985
Reported Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		15,359			48,581			50,631			50,905			49,787			49,206			50,347			49,066			49,066			49,067			49,067			49,067
2003		130,863			173,192			187,840			187,279			182,859			180,769			179,873			179,676			179,641			179,619			179,638
2004		83,824			136,345			156,171			159,157			156,810			153,693			152,326			151,247			152,540			153,117
2005		99,789			152,456			173,462			173,122			172,390			167,846			167,108			164,600			167,408
2006		65,486			96,268			101,170			99,127			97,845			96,643			98,153			101,414
2007		91,985			107,261			107,409			105,592			105,695			105,889			107,814
2008		153,019			152,847			136,537			128,392			126,912			125,946
2009		59,002			61,631			60,966			60,584			55,866
2010		70,807			99,749			100,178			98,475
2011		109,475			134,352			133,262
2012		55,943			63,487
2013		76,222
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		9	%		28	%		29	%		30	%		29	%		29	%		29	%		29	%		29	%		29	%		29	%		29	%
2003		37	%		49	%		53	%		53	%		51	%		51	%		50	%		50	%		50	%		50	%		50	%
2004		25	%		41	%		47	%		48	%		47	%		46	%		46	%		45	%		46	%		46	%
2005		44	%		67	%		76	%		76	%		76	%		74	%		74	%		73	%		74	%
2006		34	%		50	%		53	%		52	%		51	%		51	%		51	%		53	%
2007		51	%		59	%		60	%		59	%		59	%		59	%		60	%
2008		88	%		88	%		79	%		74	%		73	%		72	%
2009		41	%		43	%		43	%		42	%		39	%
2010		55	%		78	%		78	%		77	%
2011		78	%		96	%		95	%
2012		30	%		34	%
2013		38	%

Accident Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		171,696		49,067		—		49,067		—		49,067		28.6	%		—
2003		356,275		179,412		227		179,638		74		179,713		50.4	%		301
2004		333,170		152,736		381		153,117		38		153,155		46.0	%		419
2005		226,828		167,270		137		167,408		31		167,439		73.8	%		168
2006		190,783		98,988		2,426		101,414		210		101,624		53.3	%		2,636
2007		180,460		101,836		5,978		107,814		620		108,434		60.1	%		6,598
2008		173,790		125,558		388		125,946		213		126,160		72.6	%		601
2009		142,872		54,424		1,443		55,866		844		56,710		39.7	%		2,287
2010		128,427		92,881		5,594		98,475		1,640		100,115		78.0	%		7,234
2011		139,897		119,623		13,640		133,262		9,656		142,918		102.2	%		23,295
2012		184,341		43,658		19,829		63,487		8,618		72,104		39.1	%		28,447
2013		198,607		29,985		46,237		76,222		33,951		110,173		55.5	%		80,188
Total		2,427,147		1,215,437		96,279		1,311,716		55,895		1,367,611		56.3	%		152,174

-18-

December 2013 Global Loss Triangles - Insurance Segment

U.S. dollars in thousands

General Casualty Insurance (Net of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		0			0			185			464			2,848			4,691			5,591			6,574			7,802			8,662			9,887			32,509
2003		0			461			16,018			18,499			29,401			55,139			57,457			57,462			57,486			57,533			58,350
2004		0			14			77			506			5,053			7,545			16,465			21,745			28,834			32,156
2005		15			26,496			31,126			60,576			62,700			93,736			93,977			95,881			96,746
2006		—			266			2,570			29,999			56,694			72,659			72,688			72,748
2007		90			6,212			7,646			11,171			23,180			25,344			26,630
2008		1,114			5,663			18,971			35,915			39,859			42,103
2009		308			5,891			25,347			45,889			53,478
2010		932			33,959			81,399			89,512
2011		6,911			24,609			51,559
2012		8,513			43,462
2013		14,231
Reported Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		1,429			618			989			552			6,299			15,616			16,506			17,369			23,361			22,058			32,290			45,256
2003		23			13,124			25,852			33,578			58,980			59,140			57,666			57,574			57,536			57,533			58,480
2004		1,007			532			802			668			7,207			21,354			21,803			30,832			32,090			39,808
2005		30,852			85,663			89,087			95,511			100,049			100,281			98,800			123,397			112,804
2006		165			27,081			35,290			61,938			63,445			72,671			72,728			74,787
2007		4,081			13,364			13,836			28,498			31,557			32,539			31,970
2008		5,543			19,509			39,067			39,434			42,650			53,002
2009		1,875			23,928			32,781			51,965			60,412
2010		46,228			81,263			100,397			105,190
2011		29,292			67,676			105,550
2012		43,065			77,426
2013		47,253
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		2	%		1	%		1	%		1	%		7	%		18	%		19	%		20	%		27	%		25	%		37	%		51	%
2003		0	%		6	%		11	%		14	%		25	%		25	%		25	%		25	%		25	%		25	%		25	%
2004		0	%		0	%		0	%		0	%		3	%		8	%		8	%		11	%		12	%		15	%
2005		13	%		36	%		38	%		40	%		42	%		42	%		42	%		52	%		48	%
2006		0	%		13	%		16	%		29	%		30	%		34	%		34	%		35	%
2007		2	%		7	%		7	%		15	%		16	%		17	%		17	%
2008		3	%		12	%		24	%		24	%		26	%		33	%
2009		1	%		14	%		19	%		30	%		35	%
2010		24	%		42	%		51	%		54	%
2011		13	%		30	%		47	%
2012		16	%		28	%
2013		13	%

Accident Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		88,051		32,509		12,747		45,256		11,785		57,041		64.8	%		24,532
2003		233,589		58,350		130		58,480		26,339		84,819		36.3	%		26,469
2004		271,160		32,156		7,652		39,808		33,668		73,476		27.1	%		41,320
2005		236,587		96,746		16,058		112,804		38,822		151,626		64.1	%		54,880
2006		214,376		72,748		2,039		74,787		33,836		108,622		50.7	%		35,875
2007		192,097		26,630		5,340		31,970		38,398		70,368		36.6	%		43,739
2008		162,750		42,103		10,900		53,002		52,094		105,097		64.6	%		62,994
2009		172,403		53,478		6,934		60,412		64,054		124,466		72.2	%		70,988
2010		195,237		89,512		15,679		105,190		79,748		184,939		94.7	%		95,427
2011		222,493		51,559		53,991		105,550		88,753		194,303		87.3	%		142,744
2012		274,262		43,462		33,964		77,426		128,171		205,597		75.0	%		162,135
2013		355,375		14,231		33,022		47,253		197,424		244,678		68.9	%		230,447
Total		2,618,380		613,483		198,456		811,939		793,092		1,605,032		61.3	%		991,548

-19-

December 2013 Global Loss Triangles - Insurance Segment

U.S. dollars in thousands

Professional Liability Lines Insurance (Net of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		—			10			61			5,225			13,909			45,884			59,860			59,930			59,944			59,984			62,538			62,538
2003		20			80			603			799			5,997			15,424			15,727			24,885			24,967			26,108			26,122
2004		15			681			7,403			29,464			30,384			38,983			48,431			48,537			48,664			48,681
2005		95			3,328			7,272			18,291			19,043			40,954			41,214			41,518			63,193
2006		266			4,296			34,123			48,611			70,853			79,956			93,976			103,946
2007		1,312			11,982			36,732			56,952			66,212			77,668			81,848
2008		2,728			20,856			38,433			81,913			130,144			154,778
2009		5,938			30,737			51,066			65,487			87,231
2010		9,575			43,251			69,631			93,515
2011		15,257			65,775			125,150
2012		17,643			72,702
2013		11,208
Reported Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		—			2,010			7,062			23,775			28,000			47,706			60,648			59,930			59,944			59,984			62,538			62,538
2003		60			243			858			6,252			31,963			39,947			43,200			40,526			42,085			41,725			49,247
2004		434			1,690			8,102			32,688			55,417			55,570			61,340			60,761			60,888			55,890
2005		3,931			12,613			40,988			43,748			42,802			54,727			54,855			55,801			64,240
2006		41,109			40,424			77,728			97,820			112,069			162,521			161,730			159,555
2007		10,557			30,869			79,692			107,002			112,600			106,267			110,413
2008		15,136			72,016			104,703			144,350			174,781			182,616
2009		20,418			59,130			74,956			86,676			141,375
2010		30,527			68,384			101,151			111,877
2011		46,013			113,706			164,253
2012		45,869			154,392
2013		45,185
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		0	%		3	%		12	%		40	%		47	%		80	%		102	%		101	%		101	%		101	%		105	%		105	%
2003		0	%		0	%		0	%		3	%		14	%		17	%		19	%		17	%		18	%		18	%		21	%
2004		0	%		1	%		3	%		11	%		18	%		18	%		20	%		20	%		20	%		18	%
2005		1	%		4	%		13	%		13	%		13	%		17	%		17	%		17	%		20	%
2006		12	%		12	%		23	%		28	%		33	%		47	%		47	%		46	%
2007		3	%		9	%		23	%		31	%		32	%		30	%		32	%
2008		4	%		21	%		31	%		42	%		51	%		53	%
2009		5	%		15	%		19	%		22	%		36	%
2010		9	%		19	%		28	%		31	%
2011		13	%		32	%		47	%
2012		13	%		42	%
2013		11	%

Accident Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		59,558		62,538		—		62,538		2,502		65,040		109.2	%		2,502
2003		232,141		26,122		23,125		49,247		22,211		71,458		30.8	%		45,336
2004		304,642		48,681		7,209		55,890		20,094		75,984		24.9	%		27,303
2005		326,766		63,193		1,048		64,240		22,268		86,509		26.5	%		23,316
2006		343,955		103,946		55,609		159,555		39,190		198,746		57.8	%		94,800
2007		350,081		81,848		28,565		110,413		56,740		167,153		47.7	%		85,306
2008		342,038		154,778		27,839		182,616		72,129		254,745		74.5	%		99,968
2009		387,530		87,231		54,143		141,375		117,385		258,760		66.8	%		171,529
2010		355,437		93,515		18,362		111,877		125,349		237,227		66.7	%		143,711
2011		352,026		125,150		39,103		164,253		122,533		286,786		81.5	%		161,636
2012		365,086		72,702		81,690		154,392		168,575		322,967		88.5	%		250,265
2013		393,010		11,208		33,977		45,185		230,497		275,682		70.1	%		264,474
Total		3,812,270		930,913		370,670		1,301,583		999,475		2,301,058		60.4	%		1,370,145

-20-

December 2013 Global Loss Triangles - Insurance Segment

U.S. dollars in thousands

Healthcare Insurance (Net of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		—			835			2,158			3,209			5,533			8,008			8,020			8,023			8,025			8,025			8,027			8,027
2003		1			4,202			11,148			13,777			14,724			18,198			18,756			20,074			20,104			23,203			23,682
2004		2			841			5,881			9,727			12,683			13,218			13,368			13,775			15,315			16,421
2005		237			2,681			4,577			9,493			10,026			10,549			11,912			12,068			12,622
2006		308			2,652			4,428			8,749			11,948			14,604			16,824			16,875
2007		934			6,029			15,608			18,396			21,564			25,807			35,089
2008		789			7,893			15,849			25,510			31,383			33,650
2009		4,581			14,167			24,510			35,976			54,691
2010		2,135			12,031			31,600			49,743
2011		1,923			15,082			51,054
2012		1,903			17,840
2013		3,244
Reported Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		130			1,350			5,450			8,985			8,910			8,444			8,121			8,086			8,046			8,042			8,027			8,027
2003		345			11,153			20,246			20,723			20,529			23,625			23,160			23,420			23,793			25,905			24,294
2004		1,846			6,395			12,054			14,584			14,863			15,909			15,917			15,933			17,957			16,514
2005		5,197			10,142			13,483			12,473			11,766			12,116			12,937			13,753			14,113
2006		4,267			8,926			10,239			12,740			14,827			17,791			17,796			17,657
2007		3,603			13,040			22,295			31,659			34,971			35,581			37,622
2008		3,786			16,754			29,522			35,794			38,252			39,607
2009		8,941			26,830			45,105			61,791			77,272
2010		11,044			37,863			69,498			76,309
2011		10,218			48,409			87,339
2012		15,061			46,588
2013		10,502
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Accident Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		0	%		3	%		14	%		23	%		22	%		21	%		20	%		20	%		20	%		20	%		20	%		20	%
2003		0	%		15	%		27	%		28	%		27	%		31	%		31	%		31	%		32	%		35	%		32	%
2004		2	%		6	%		10	%		13	%		13	%		14	%		14	%		14	%		16	%		14	%
2005		4	%		9	%		11	%		11	%		10	%		10	%		11	%		12	%		12	%
2006		3	%		7	%		8	%		10	%		12	%		14	%		14	%		14	%
2007		3	%		11	%		19	%		27	%		30	%		30	%		32	%
2008		3	%		13	%		22	%		27	%		29	%		30	%
2009		6	%		18	%		30	%		41	%		51	%
2010		6	%		22	%		41	%		45	%
2011		6	%		28	%		50	%
2012		9	%		26	%
2013		6	%

Accident Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		39,904		8,027		—		8,027		—		8,027		20.1	%		—
2003		75,002		23,682		612		24,294		3,773		28,067		37.4	%		4,384
2004		114,883		16,421		92		16,514		5,201		21,715		18.9	%		5,293
2005		118,565		12,622		1,491		14,113		5,794		19,907		16.8	%		7,285
2006		124,024		16,875		782		17,657		4,293		21,949		17.7	%		5,075
2007		117,774		35,089		2,533		37,622		6,415		44,037		37.4	%		8,948
2008		131,428		33,650		5,957		39,607		9,614		49,221		37.5	%		15,571
2009		150,183		54,691		22,581		77,272		13,884		91,156		60.7	%		36,465
2010		170,003		49,743		26,566		76,309		37,922		114,231		67.2	%		64,487
2011		173,748		51,054		36,285		87,339		30,763		118,102		68.0	%		67,048
2012		176,483		17,840		28,748		46,588		61,038		107,626		61.0	%		89,786
2013		173,347		3,244		7,258		10,502		92,571		103,074		59.5	%		99,830
Total		1,565,343		322,938		132,905		455,843		271,267		727,110		46.5	%		404,172

-21-

December 2013 Global Loss Triangles - Insurance Segment

U.S. dollars in thousands

Specialty Lines Insurance (Net of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60		72		84		96		108		120		132		144
2002		—			—			—			—			—		—		—		—		—		—		—		—
2003		—			—			—			—			—		—		—		—		—		—		—
2004		—			—			—			—			—		—		—		—		—		—
2005		—			—			—			—			—		—		—		—		—
2006		—			—			—			—			—		—		—		—
2007		—			—			—			—			—		—		—
2008		—			—			—			—			—		—
2009		—			—			—			—			—
2010		—			—			—			—
2011		—			—			—
2012		—			126
2013		189
Reported Loss & ALAE
Accident Year	Months of Development
	12			24			36			48			60		72		84		96		108		120		132		144
2002		—			—			—			—			—		—		—		—		—		—		—		—
2003		—			—			—			—			—		—		—		—		—		—		—
2004		—			—			—			—			—		—		—		—		—		—
2005		—			—			—			—			—		—		—		—		—
2006		—			—			—			—			—		—		—		—
2007		—			—			—			—			—		—		—
2008		—			—			—			—			—		—
2009		—			—			—			—			—
2010		—			—			—			—
2011		—			—			—
2012		—			131
2013		245
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Accident Year	Months of Development
	12			24			36			48			60		72		84		96		108		120		132		144
2002
2003
2004
2005
2006
2007
2008
2009
2010		0	%		0	%		0	%		0	%
2011		0	%		0	%		0	%
2012		0	%		1	%
2013		1	%

Accident Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		—		—		—		—		—		—		0.0	%		—
2003		—		—		—		—		—		—		0.0	%		—
2004		—		—		—		—		—		—		0.0	%		—
2005		—		—		—		—		—		—		0.0	%		—
2006		—		—		—		—		—		—		0.0	%		—
2007		—		—		—		—		—		—		0.0	%		—
2008		—		—		—		—		—		—		0.0	%		—
2009		—		—		—		—		—		—		0.0	%		—
2010		153		—		—		—		61		61		40.0	%		61
2011		2,470		—		—		—		988		988		40.0	%		988
2012		9,471		126		5		131		4,131		4,262		45.0	%		4,136
2013		24,246		189		55		245		13,071		13,316		54.9	%		13,126
Total		36,340		316		60		376		18,251		18,627		51.3	%		18,311

-22-

December 2013 Global Loss Triangles - Reinsurance Segment

U.S. dollars in thousands

Property Catastrophe Reinsurance (Gross of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		101			2,131			4,161			4,194			4,310			4,310			4,336			4,336			4,336			4,336			4,336			4,336
2003		3,977			6,251			6,882			6,831			6,843			7,235			7,237			7,237			7,237			7,237			7,237
2004		17,379			47,475			55,350			57,786			59,259			60,040			60,489			60,852			61,286			61,324
2005		35,255			121,814			141,709			148,497			151,206			152,497			152,998			153,327			153,722
2006		710			8,912			9,671			9,829			9,903			9,917			9,917			9,917
2007		3,999			12,770			12,511			12,767			12,561			12,603			12,641
2008		15,798			26,979			30,619			32,007			33,204			33,596
2009		269			905			2,977			4,139			4,664
2010		3,798			54,580			76,523			86,082
2011		22,254			64,133			103,495
2012		26,282			65,659
2013		13,043
Reported Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		3,041			5,163			4,370			4,390			4,372			4,371			4,356			4,356			4,336			4,336			4,336			4,336
2003		6,172			7,561			7,009			6,920			6,939			7,235			7,237			7,237			7,237			7,237			7,237
2004		33,642			56,808			59,396			60,325			60,712			61,073			60,889			61,110			61,373			61,373
2005		130,142			151,004			151,495			153,665			154,739			155,285			155,383			155,317			154,028
2006		3,275			9,580			9,885			10,172			10,131			10,136			10,131			10,141
2007		17,051			15,664			13,584			13,412			12,847			12,778			12,789
2008		31,318			32,595			33,106			33,901			33,952			33,896
2009		2,557			5,613			5,246			5,281			5,051
2010		32,490			86,547			103,457			100,107
2011		89,719			123,934			124,451
2012		55,315			84,386
2013		46,205
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		9	%		13	%		11	%		11	%		11	%		11	%		11	%		11	%		11	%		11	%		11	%		11	%
2003		12	%		12	%		11	%		11	%		11	%		12	%		12	%		12	%		12	%		12	%		12	%
2004		60	%		84	%		87	%		89	%		89	%		90	%		90	%		90	%		90	%		90	%
2005		180	%		182	%		183	%		185	%		187	%		187	%		187	%		187	%		186	%
2006		6	%		14	%		15	%		15	%		15	%		15	%		15	%		15	%
2007		30	%		22	%		19	%		18	%		18	%		18	%		18	%
2008		63	%		49	%		49	%		50	%		51	%		51	%
2009		4	%		7	%		6	%		6	%		6	%
2010		31	%		64	%		76	%		73	%
2011		64	%		63	%		63	%
2012		31	%		33	%
2013		19	%

Treaty Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR			Ultimate		Ult. Ratio			Unpaid
2002		41,284		4,336		0		4,336		(0	)		4,336		10.5	%		0
2003		61,251		7,237		0		7,237		(0	)		7,237		11.8	%		(0	)
2004		68,026		61,324		49		61,373		6			61,379		90.2	%		55
2005		82,969		153,722		306		154,028		72			154,100		185.7	%		378
2006		67,244		9,917		223		10,141		25			10,166		15.1	%		248
2007		72,659		12,641		148		12,789		12			12,800		17.6	%		160
2008		66,958		33,596		299		33,896		131			34,027		50.8	%		431
2009		83,062		4,664		388		5,051		255			5,306		6.4	%		643
2010		136,472		86,082		14,025		100,107		5,297			105,404		77.2	%		19,322
2011		198,072		103,495		20,955		124,451		9,268			133,718		67.5	%		30,223
2012		252,465		65,659		18,727		84,386		8,587			92,973		36.8	%		27,314
2013		239,665		13,043		33,163		46,205		51,280			97,485		40.7	%		84,443
Total		1,370,128		555,715		88,284		644,000		74,933			718,932		52.5	%		163,217

-23-

December 2013 Global Loss Triangles - Reinsurance Segment

Excluding large losses

U.S. dollars in thousands

Property Per Risk Reinsurance (Gross of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		1,994			14,146			21,254			24,533			26,202			27,034			27,241			27,550			27,573			27,588			27,587			28,446
2003		1,794			9,960			13,446			16,264			17,931			18,421			18,892			19,262			19,340			19,374			19,377
2004		949			7,461			11,995			14,439			15,598			17,294			17,210			17,405			17,442			17,490
2005		5,111			23,166			29,796			31,025			42,623			46,347			46,594			47,527			47,900
2006		3,793			17,679			23,689			27,465			29,525			29,862			29,924			29,785
2007		717			8,668			12,738			14,733			15,753			19,398			19,896
2008		3,920			10,738			12,479			14,966			15,195			15,210
2009		4,664			12,112			18,692			21,638			23,043
2010		5,835			20,289			29,650			32,846
2011		4,003			22,074			31,706
2012		5,422			31,365
2013		5,155
Reported Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		3,082			17,552			26,185			27,026			27,589			27,756			27,588			27,715			27,606			27,628			27,603			28,448
2003		6,313			14,931			17,064			19,609			19,904			19,931			20,437			19,891			19,427			19,377			19,428
2004		7,729			9,571			14,654			16,236			16,650			17,180			17,493			17,538			17,528			17,858
2005		6,675			33,802			43,645			45,360			45,571			46,163			46,136			47,257			48,255
2006		9,307			23,794			30,449			30,525			30,085			30,377			30,259			30,121
2007		3,360			23,153			24,853			23,927			23,660			20,075			20,199
2008		9,627			15,156			15,746			16,123			16,068			15,801
2009		11,574			20,126			21,982			23,031			23,360
2010		13,219			34,080			36,749			35,946
2011		16,736			38,181			41,381
2012		19,163			43,213
2013		22,853
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		17	%		28	%		41	%		42	%		43	%		43	%		43	%		43	%		43	%		43	%		43	%		44	%
2003		19	%		22	%		24	%		28	%		29	%		30	%		31	%		30	%		29	%		29	%		29	%
2004		16	%		13	%		20	%		22	%		22	%		23	%		23	%		23	%		23	%		24	%
2005		15	%		43	%		57	%		59	%		59	%		60	%		60	%		61	%		63	%
2006		19	%		35	%		45	%		45	%		44	%		45	%		44	%		44	%
2007		14	%		57	%		60	%		57	%		56	%		48	%		48	%
2008		42	%		46	%		48	%		49	%		48	%		48	%
2009		51	%		58	%		62	%		65	%		66	%
2010		39	%		69	%		72	%		71	%
2011		38	%		54	%		59	%
2012		33	%		43	%
2013		31	%

Treaty Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		64,253		28,446		3		28,448		6		28,454		44.3	%		8
2003		66,185		19,377		51		19,428		26		19,454		29.4	%		77
2004		75,094		17,490		368		17,858		184		18,043		24.0	%		552
2005		77,035		47,900		355		48,255		175		48,430		62.9	%		530
2006		68,059		29,785		336		30,121		123		30,245		44.4	%		460
2007		41,917		19,896		303		20,199		373		20,573		49.1	%		676
2008		33,169		15,210		591		15,801		358		16,159		48.7	%		949
2009		35,355		23,043		317		23,360		105		23,464		66.4	%		422
2010		50,890		32,846		3,099		35,946		1,609		37,555		73.8	%		4,708
2011		69,634		31,706		9,675		41,381		8,625		50,006		71.8	%		18,300
2012		99,745		31,365		11,848		43,213		24,492		67,705		67.9	%		36,340
2013		74,752		5,155		17,697		22,853		37,626		60,479		80.9	%		55,324
Total		756,089		302,219		44,645		346,863		73,703		420,566		55.6	%		118,347

-24-

December 2013 Global Loss Triangles - Reinsurance Segment

U.S. dollars in thousands

General Casualty Reinsurance (Gross of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		329			3,688			7,670			10,682			13,471			15,290			16,500			17,685			18,347			18,481			18,814			18,880
2003		705			3,063			5,962			11,466			21,916			26,087			27,838			30,357			32,877			35,385			36,800
2004		648			1,088			6,331			11,850			21,718			28,466			37,451			40,561			44,091			45,848
2005		119			1,584			9,500			19,705			31,410			41,416			50,092			57,041			59,700
2006		944			6,183			20,496			34,829			43,542			51,219			56,562			63,383
2007		3			3,135			10,113			26,839			39,243			49,828			59,483
2008		29			1,468			13,077			22,515			34,675			49,334
2009		460			4,842			16,498			27,254			44,857
2010		519			24,429			45,235			61,016
2011		849			12,560			32,168
2012		842			10,435
2013		75
Reported Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		346			5,531			10,970			18,737			19,011			19,864			20,694			19,214			19,906			19,931			19,860			19,869
2003		1,588			8,176			11,853			21,884			28,983			29,495			32,262			33,460			36,363			37,525			38,890
2004		1,357			9,104			14,286			23,228			36,173			44,570			45,306			48,468			53,339			55,381
2005		2,055			11,283			23,806			34,636			44,890			51,272			55,714			63,185			63,357
2006		2,682			20,398			38,266			51,622			57,314			64,110			67,040			70,856
2007		1,033			9,706			34,826			47,229			58,048			67,933			69,384
2008		1,591			13,743			37,550			48,234			61,791			71,902
2009		1,256			20,078			37,140			55,604			60,568
2010		10,615			43,972			67,172			89,112
2011		2,869			23,007			60,018
2012		2,991			32,838
2013		2,370
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		10	%		20	%		33	%		56	%		57	%		59	%		62	%		57	%		59	%		59	%		59	%		59	%
2003		7	%		10	%		12	%		22	%		29	%		29	%		32	%		33	%		36	%		37	%		39	%
2004		3	%		8	%		11	%		19	%		29	%		36	%		37	%		40	%		43	%		45	%
2005		4	%		8	%		15	%		22	%		29	%		33	%		36	%		40	%		40	%
2006		6	%		16	%		29	%		40	%		44	%		49	%		52	%		54	%
2007		2	%		7	%		25	%		33	%		40	%		47	%		48	%
2008		4	%		11	%		29	%		37	%		47	%		55	%
2009		2	%		13	%		24	%		36	%		39	%
2010		18	%		28	%		37	%		50	%
2011		5	%		12	%		28	%
2012		5	%		21	%
2013		4	%

Treaty Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		33,679		18,880		989		19,869		1,235		21,104		62.7	%		2,224
2003		100,615		36,800		2,090		38,890		6,366		45,256		45.0	%		8,456
2004		122,706		45,848		9,533		55,381		9,006		64,387		52.5	%		18,539
2005		156,614		59,700		3,657		63,357		12,486		75,843		48.4	%		16,142
2006		130,459		63,383		7,473		70,856		13,566		84,422		64.7	%		21,039
2007		143,414		59,483		9,901		69,384		21,296		90,680		63.2	%		31,197
2008		131,842		49,334		22,568		71,902		27,014		98,916		75.0	%		49,581
2009		156,837		44,857		15,711		60,568		53,979		114,548		73.0	%		69,690
2010		177,141		61,016		28,095		89,112		53,709		142,821		80.6	%		81,804
2011		212,486		32,168		27,850		60,018		97,652		157,669		74.2	%		125,502
2012		156,564		10,435		22,403		32,838		77,863		110,701		70.7	%		100,266
2013		55,601		75		2,295		2,370		36,172		38,542		69.3	%		38,467
Total		1,577,960		481,979		152,566		634,545		410,343		1,044,888		66.2	%		562,909

-25-

December 2013 Global Loss Triangles - Reinsurance Segment

U.S. dollars in thousands

Professional Liability Lines Reinsurance (Gross of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		—			915			1,676			4,405			10,898			12,884			14,202			15,561			16,061			16,838			16,776			17,687
2003		0			191			1,274			3,207			12,429			16,125			21,385			24,308			26,798			27,514			28,948
2004		9			345			5,373			10,445			19,634			24,920			31,103			32,512			34,241			36,816
2005		8			786			6,852			22,841			35,126			43,205			48,780			51,822			57,422
2006		1			711			7,112			20,428			34,442			46,932			52,492			60,388
2007		5			1,263			11,453			41,735			69,029			100,723			122,946
2008		37			2,140			10,455			25,184			46,029			55,912
2009		17			1,675			6,595			15,484			23,175
2010		24			2,064			8,371			14,651
2011		19			610			3,943
2012		32			975
2013		69
Reported Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		—			3,594			12,221			21,012			22,717			22,060			22,297			21,292			19,469			19,553			18,660			18,524
2003		65			1,599			13,981			21,047			29,125			29,219			33,173			33,043			34,729			34,090			34,098
2004		819			7,902			20,205			33,619			36,122			35,884			42,934			41,564			41,758			40,978
2005		456			6,067			22,581			46,077			50,876			55,740			61,260			68,872			70,690
2006		71			8,619			26,873			50,886			66,537			70,039			77,882			84,750
2007		227			17,507			75,722			118,166			134,239			138,158			162,118
2008		2,684			15,190			38,738			61,121			78,988			84,521
2009		295			6,314			17,184			29,616			36,600
2010		502			5,216			13,559			24,495
2011		165			2,973			7,305
2012		394			4,737
2013		619
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		0	%		9	%		26	%		46	%		49	%		48	%		48	%		46	%		42	%		42	%		40	%		40	%
2003		0	%		2	%		15	%		22	%		29	%		29	%		33	%		33	%		35	%		34	%		34	%
2004		2	%		7	%		17	%		28	%		30	%		30	%		36	%		35	%		35	%		34	%
2005		1	%		3	%		11	%		22	%		24	%		27	%		30	%		33	%		34	%
2006		0	%		5	%		14	%		26	%		34	%		36	%		40	%		43	%
2007		0	%		9	%		36	%		55	%		62	%		64	%		75	%
2008		5	%		9	%		21	%		33	%		43	%		46	%
2009		1	%		5	%		13	%		22	%		27	%
2010		2	%		5	%		13	%		22	%
2011		1	%		4	%		9	%
2012		2	%		7	%
2013		2	%

Treaty Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		46,830		17,687		837		18,524		1,715		20,239		43.2	%		2,552
2003		99,803		28,948		5,150		34,098		4,550		38,649		38.7	%		9,701
2004		119,153		36,816		4,162		40,978		6,894		47,873		40.2	%		11,057
2005		207,043		57,422		13,267		70,690		11,091		81,781		39.5	%		24,358
2006		195,325		60,388		24,362		84,750		15,559		100,309		51.4	%		39,920
2007		214,762		122,946		39,171		162,118		27,043		189,161		88.1	%		66,214
2008		185,168		55,912		28,609		84,521		45,366		129,887		70.1	%		73,975
2009		134,674		23,175		13,425		36,600		59,025		95,625		71.0	%		72,450
2010		111,029		14,651		9,844		24,495		51,307		75,802		68.3	%		61,151
2011		82,766		3,943		3,362		7,305		48,244		55,549		67.1	%		51,606
2012		66,652		975		3,762		4,737		39,519		44,256		66.4	%		43,281
2013		25,424		69		550		619		16,051		16,671		65.6	%		16,601
Total		1,488,631		422,933		146,502		569,435		326,366		895,800		60.2	%		472,867

-26-

December 2013 Global Loss Triangles - Reinsurance Segment

Excluding large losses

U.S. dollars in thousands

Specialty Lines Reinsurance (Gross of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		52			1,225			2,576			3,222			3,687			4,081			4,191			4,439			4,466			4,475			4,484			4,491
2003		15			886			2,373			3,294			4,452			4,656			4,602			4,660			4,728			4,800			4,831
2004		43			5,115			8,048			10,943			9,076			9,470			9,876			10,582			10,649			10,633
2005		278			3,943			9,184			7,919			10,600			12,078			12,797			12,955			13,324
2006		68			2,821			5,666			6,934			7,793			8,329			8,560			8,714
2007		279			4,098			7,242			8,936			10,047			10,686			11,036
2008		534			4,050			7,972			10,335			12,427			13,650
2009		121			2,196			4,283			6,338			6,635
2010		73			1,222			3,879			5,023
2011		2,365			10,645			21,002
2012		28,387			88,259
2013		1,123
Reported Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		270			3,065			4,472			4,580			4,963			4,700			4,691			4,629			4,623			4,609			4,587			4,591
2003		54			887			2,614			4,643			5,266			5,158			4,929			4,872			4,905			4,996			5,104
2004		134			8,197			9,085			11,931			10,545			9,696			9,826			9,694			9,641			10,939
2005		304			11,551			11,472			10,788			11,522			12,312			14,221			14,149			15,529
2006		69			6,022			7,949			8,880			9,035			9,226			9,256			9,185
2007		841			7,432			9,808			10,708			10,667			10,645			10,788
2008		1,072			9,821			12,870			11,804			12,130			15,075
2009		326			3,799			6,911			7,929			7,684
2010		237			3,781			5,245			6,636
2011		4,691			17,305			26,694
2012		31,773			95,652
2013		6,980
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		22	%		28	%		39	%		38	%		41	%		39	%		39	%		38	%		38	%		38	%		38	%		38	%
2003		2	%		7	%		13	%		23	%		26	%		26	%		25	%		24	%		24	%		25	%		25	%
2004		1	%		26	%		24	%		32	%		28	%		25	%		26	%		25	%		25	%		28	%
2005		3	%		33	%		28	%		26	%		28	%		30	%		35	%		34	%		38	%
2006		0	%		20	%		26	%		29	%		29	%		30	%		30	%		30	%
2007		4	%		20	%		25	%		27	%		27	%		27	%		28	%
2008		5	%		30	%		38	%		35	%		36	%		45	%
2009		2	%		12	%		21	%		24	%		24	%
2010		1	%		10	%		13	%		17	%
2011		10	%		24	%		34	%
2012		29	%		66	%
2013		4	%

Treaty Year	Earned Premium		Loss & ALAE
			Paid		Case O/S			Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		12,191		4,491		100			4,591		88		4,680		38.4	%		188
2003		20,142		4,831		272			5,104		236		5,340		26.5	%		508
2004		38,407		10,633		306			10,939		385		11,324		29.5	%		691
2005		41,174		13,324		2,205			15,529		584		16,113		39.1	%		2,789
2006		30,976		8,714		472			9,185		595		9,780		31.6	%		1,066
2007		38,975		11,036		(247	)		10,788		815		11,603		29.8	%		568
2008		33,855		13,650		1,425			15,075		734		15,808		46.7	%		2,159
2009		32,619		6,635		1,049			7,684		698		8,382		25.7	%		1,747
2010		38,721		5,023		1,613			6,636		2,413		9,049		23.4	%		4,026
2011		77,908		21,002		5,692			26,694		5,942		32,636		41.9	%		11,634
2012		144,261		88,259		7,393			95,652		19,438		115,091		79.8	%		26,832
2013		156,864		1,123		5,857			6,980		95,906		102,887		65.6	%		101,763
Total		666,093		188,720		26,137			214,857		127,835		342,692		51.4	%		153,972

-27-

December 2013 Global Loss Triangles - Reinsurance Segment

U.S. dollars in thousands

Property Catastrophe Reinsurance (Net of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		101			2,131			4,161			4,194			4,310			4,310			4,336			4,336			4,336			4,336			4,336			4,336
2003		3,977			6,251			6,882			6,831			6,843			7,235			7,237			7,237			7,237			7,237			7,237
2004		17,379			47,475			55,350			57,786			58,813			59,457			59,741			60,097			60,525			60,338
2005		35,255			99,502			106,468			111,778			113,039			112,992			113,330			113,657			113,693
2006		710			8,912			9,671			9,829			9,903			9,917			9,917			9,917
2007		3,999			12,770			12,511			12,767			12,561			12,603			12,641
2008		15,798			26,979			30,619			32,007			33,204			33,596
2009		269			905			2,977			4,139			4,664
2010		3,798			54,580			76,523			86,082
2011		22,254			64,133			103,495
2012		26,282			65,659
2013		13,043
Reported Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		3,041			5,163			4,370			4,390			4,372			4,371			4,356			4,356			4,336			4,336			4,336			4,336
2003		6,172			7,561			7,009			6,920			6,939			7,235			7,237			7,237			7,237			7,237			7,237
2004		33,642			56,808			59,396			60,325			60,267			60,490			60,141			60,355			60,613			60,387
2005		130,142			128,692			116,254			116,946			116,572			115,780			115,715			115,648			113,998
2006		3,275			9,580			9,885			10,172			10,131			10,136			10,131			10,141
2007		17,051			15,664			13,584			13,412			12,847			12,778			12,789
2008		31,318			32,595			33,106			33,901			33,952			33,896
2009		2,557			5,613			5,246			5,281			5,051
2010		32,490			86,547			103,457			100,107
2011		89,719			123,934			124,451
2012		55,315			84,386
2013		46,205
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		9	%		13	%		11	%		11	%		11	%		11	%		11	%		11	%		11	%		11	%		11	%		11	%
2003		12	%		12	%		11	%		11	%		11	%		12	%		12	%		12	%		12	%		12	%		12	%
2004		70	%		95	%		99	%		101	%		100	%		101	%		100	%		101	%		101	%		101	%
2005		224	%		186	%		168	%		169	%		169	%		168	%		168	%		168	%		165	%
2006		6	%		14	%		15	%		15	%		15	%		15	%		15	%		15	%
2007		31	%		22	%		19	%		18	%		18	%		18	%		18	%
2008		64	%		49	%		50	%		51	%		51	%		51	%
2009		4	%		7	%		6	%		6	%		6	%
2010		31	%		65	%		76	%		73	%
2011		64	%		63	%		63	%
2012		31	%		33	%
2013		22	%

Treaty Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR			Ultimate		Ult. Ratio			Unpaid
2002		41,284		4,336		0		4,336		(0	)		4,336		10.5	%		0
2003		61,251		7,237		0		7,237		(0	)		7,237		11.8	%		(0	)
2004		59,976		60,338		49		60,387		(67	)		60,319		100.6	%		(19	)
2005		69,029		113,693		306		113,998		23			114,021		165.2	%		329
2006		66,181		9,917		223		10,141		25			10,166		15.4	%		248
2007		72,592		12,641		148		12,789		12			12,800		17.6	%		160
2008		66,877		33,596		299		33,896		131			34,027		50.9	%		431
2009		82,982		4,664		388		5,051		255			5,306		6.4	%		643
2010		136,455		86,082		14,025		100,107		5,297			105,404		77.2	%		19,322
2011		198,069		103,495		20,955		124,451		9,268			133,718		67.5	%		30,223
2012		252,463		65,659		18,727		84,386		8,587			92,973		36.8	%		27,314
2013		212,589		13,043		33,163		46,205		51,163			97,368		45.8	%		84,325
Total		1,319,749		514,700		88,284		602,984		74,692			677,676		51.3	%		162,976

-28-

December 2013 Global Loss Triangles - Reinsurance Segment

Excluding large losses

U.S. dollars in thousands

Property Per Risk Reinsurance (Net of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		1,994			14,146			21,254			24,533			26,202			27,034			27,241			27,550			27,573			27,588			27,587			28,446
2003		1,794			9,960			13,446			16,264			17,931			18,421			18,892			19,262			19,340			19,374			19,377
2004		949			7,461			11,995			14,439			15,598			17,294			17,210			17,405			17,442			17,490
2005		5,111			23,166			29,796			31,025			42,623			46,347			46,594			47,527			47,900
2006		3,793			17,679			23,689			27,465			29,525			29,862			29,924			29,785
2007		717			8,668			12,738			14,733			15,753			19,398			19,896
2008		3,920			10,738			12,479			14,966			15,195			15,210
2009		4,664			12,112			18,692			21,638			23,043
2010		5,835			20,289			29,650			32,846
2011		4,003			22,074			31,706
2012		5,422			27,905
2013		5,155
Reported Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		3,082			17,552			26,185			27,026			27,589			27,756			27,588			27,715			27,606			27,628			27,603			28,448
2003		6,313			14,931			17,064			19,609			19,904			19,931			20,437			19,891			19,427			19,377			19,428
2004		7,729			9,571			14,654			16,236			16,650			17,180			17,493			17,538			17,528			17,858
2005		6,675			33,802			43,645			45,360			45,571			46,163			46,136			47,257			48,255
2006		9,307			23,794			30,449			30,525			30,085			30,377			30,259			30,121
2007		3,360			23,153			24,853			23,927			23,660			20,075			20,199
2008		9,627			15,156			15,746			16,123			16,068			15,801
2009		11,574			20,126			21,982			23,031			23,360
2010		13,219			34,080			36,749			35,946
2011		16,736			38,181			41,381
2012		19,163			38,439
2013		22,853
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		17	%		28	%		41	%		42	%		43	%		43	%		43	%		43	%		43	%		43	%		43	%		44	%
2003		19	%		22	%		24	%		28	%		29	%		30	%		31	%		30	%		29	%		29	%		29	%
2004		16	%		13	%		20	%		22	%		22	%		23	%		23	%		23	%		23	%		24	%
2005		16	%		44	%		59	%		61	%		61	%		62	%		62	%		63	%		65	%
2006		20	%		35	%		45	%		45	%		44	%		45	%		45	%		45	%
2007		14	%		57	%		60	%		57	%		56	%		48	%		48	%
2008		44	%		48	%		50	%		51	%		50	%		50	%
2009		51	%		58	%		62	%		65	%		66	%
2010		39	%		69	%		72	%		71	%
2011		38	%		54	%		59	%
2012		34	%		43	%
2013		32	%

Treaty Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		64,253		28,446		3		28,448		6		28,454		44.3	%		8
2003		66,185		19,377		51		19,428		26		19,454		29.4	%		77
2004		75,094		17,490		368		17,858		184		18,043		24.0	%		552
2005		74,575		47,900		355		48,255		175		48,430		64.9	%		530
2006		67,633		29,785		336		30,121		123		30,245		44.7	%		460
2007		41,917		19,896		303		20,199		373		20,573		49.1	%		676
2008		31,837		15,210		591		15,801		358		16,159		50.8	%		949
2009		35,355		23,043		317		23,360		105		23,464		66.4	%		422
2010		50,890		32,846		3,099		35,946		1,609		37,555		73.8	%		4,708
2011		69,634		31,706		9,675		41,381		8,625		50,006		71.8	%		18,300
2012		88,845		27,905		10,534		38,439		21,752		60,191		67.7	%		32,286
2013		72,111		5,155		17,697		22,853		35,777		58,630		81.3	%		53,475
Total		738,329		298,759		43,331		342,090		69,113		411,203		55.7	%		112,444

-29-

December 2013 Global Loss Triangles - Reinsurance Segment

U.S. dollars in thousands

General Casualty Reinsurance (Net of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		329			3,688			7,670			10,682			13,471			15,290			16,500			17,685			18,347			18,481			18,814			18,880
2003		705			3,063			5,962			11,466			21,916			26,087			27,838			30,357			32,877			35,385			36,800
2004		648			1,088			6,331			11,850			21,718			28,466			37,451			40,561			44,091			45,848
2005		119			1,584			9,500			19,705			31,410			41,416			50,092			57,041			59,700
2006		944			6,183			20,496			34,829			43,542			51,219			56,562			63,383
2007		3			3,135			10,113			26,839			39,243			49,828			59,483
2008		29			1,468			13,077			22,515			34,675			49,334
2009		460			4,842			16,498			27,254			44,857
2010		519			24,429			45,235			61,016
2011		849			12,560			32,168
2012		842			10,435
2013		75
Reported Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		346			5,531			10,970			18,737			19,011			19,864			20,694			19,214			19,906			19,931			19,860			19,869
2003		1,588			8,176			11,853			21,884			28,983			29,495			32,262			33,460			36,363			37,525			38,890
2004		1,357			9,104			14,286			23,228			36,173			44,570			45,306			48,468			53,339			55,381
2005		2,055			11,283			23,806			34,636			44,890			51,272			55,714			63,185			63,357
2006		2,682			20,398			38,266			51,622			57,314			64,110			67,040			70,856
2007		1,033			9,706			34,826			47,229			58,048			67,933			69,384
2008		1,591			13,743			37,550			48,234			61,791			71,902
2009		1,256			20,078			37,140			55,604			60,568
2010		10,615			43,972			67,172			89,112
2011		2,869			23,007			60,018
2012		2,991			32,838
2013		2,370
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		10	%		20	%		33	%		56	%		57	%		59	%		62	%		57	%		59	%		59	%		59	%		59	%
2003		7	%		10	%		12	%		22	%		29	%		29	%		32	%		33	%		36	%		37	%		39	%
2004		3	%		8	%		11	%		19	%		29	%		36	%		37	%		40	%		43	%		45	%
2005		4	%		8	%		15	%		22	%		29	%		33	%		36	%		40	%		40	%
2006		6	%		16	%		29	%		40	%		44	%		49	%		52	%		54	%
2007		2	%		7	%		25	%		33	%		41	%		48	%		48	%
2008		4	%		11	%		29	%		37	%		47	%		55	%
2009		2	%		13	%		24	%		36	%		39	%
2010		18	%		28	%		38	%		50	%
2011		5	%		12	%		28	%
2012		5	%		21	%
2013		4	%

Treaty Year	Earned Premium		Loss & ALAE
			Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		33,679		18,880		989		19,869		1,235		21,104		62.7	%		2,224
2003		100,615		36,800		2,090		38,890		6,366		45,256		45.0	%		8,456
2004		122,706		45,848		9,533		55,381		9,006		64,387		52.5	%		18,539
2005		156,484		59,700		3,657		63,357		12,486		75,843		48.5	%		16,142
2006		130,280		63,383		7,473		70,856		13,566		84,422		64.8	%		21,039
2007		143,154		59,483		9,901		69,384		21,296		90,680		63.3	%		31,197
2008		131,404		49,334		22,568		71,902		27,014		98,916		75.3	%		49,581
2009		156,565		44,857		15,711		60,568		53,979		114,548		73.2	%		69,690
2010		176,629		61,016		28,095		89,112		53,709		142,821		80.9	%		81,804
2011		212,486		32,168		27,850		60,018		97,652		157,669		74.2	%		125,502
2012		156,564		10,435		22,403		32,838		77,863		110,701		70.7	%		100,266
2013		55,601		75		2,295		2,370		36,172		38,542		69.3	%		38,467
Total		1,576,166		481,979		152,566		634,545		410,343		1,044,888		66.3	%		562,909

-30-

December 2013 Global Loss Triangles - Reinsurance Segment

U.S. dollars in thousands

Professional Liability Lines Reinsurance (Net of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		—			915			1,676			4,405			10,898			12,884			14,202			15,561			16,061			16,838			16,776			17,687
2003		0			191			1,274			3,207			12,429			16,125			21,385			24,308			26,798			27,514			28,948
2004		9			345			5,373			10,445			19,634			24,920			31,103			32,512			34,241			36,816
2005		8			786			6,852			22,841			35,126			43,205			48,780			51,822			57,422
2006		1			711			7,112			20,428			34,442			46,932			52,492			60,388
2007		5			1,263			11,453			41,735			69,029			100,723			122,946
2008		37			2,140			10,455			25,184			46,029			55,912
2009		17			1,675			6,595			15,484			23,175
2010		24			2,064			8,371			14,651
2011		19			610			3,943
2012		32			975
2013		69
Reported Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		—			3,594			12,221			21,012			22,717			22,060			22,297			21,292			19,469			19,553			18,660			18,524
2003		65			1,599			13,981			21,047			29,125			29,219			33,173			33,043			34,729			34,090			34,098
2004		819			7,902			20,205			33,619			36,122			35,884			42,934			41,564			41,758			40,978
2005		456			6,067			22,581			46,077			50,876			55,740			61,260			68,872			70,690
2006		71			8,619			26,873			50,886			66,537			70,039			77,882			84,750
2007		227			17,507			75,722			118,166			134,239			138,158			162,118
2008		2,684			15,190			38,738			61,121			78,988			84,521
2009		295			6,314			17,184			29,616			36,600
2010		502			5,216			13,559			24,495
2011		165			2,973			7,305
2012		394			4,737
2013		619
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		0	%		9	%		26	%		46	%		49	%		48	%		48	%		46	%		42	%		42	%		40	%		40	%
2003		0	%		2	%		15	%		22	%		29	%		29	%		33	%		33	%		35	%		34	%		34	%
2004		2	%		7	%		17	%		28	%		30	%		30	%		36	%		35	%		35	%		34	%
2005		1	%		3	%		11	%		22	%		24	%		27	%		30	%		33	%		34	%
2006		0	%		5	%		14	%		26	%		34	%		36	%		40	%		43	%
2007		0	%		9	%		36	%		55	%		62	%		64	%		75	%
2008		5	%		9	%		21	%		33	%		43	%		46	%
2009		1	%		5	%		13	%		22	%		27	%
2010		2	%		5	%		13	%		22	%
2011		1	%		4	%		9	%
2012		2	%		7	%
2013		2	%

Treaty Year	Earned		Loss & ALAE
	Premium		Paid		Case O/S		Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		46,830		17,687		837		18,524		1,715		20,239		43.2	%		2,552
2003		99,803		28,948		5,150		34,098		4,550		38,649		38.7	%		9,701
2004		119,153		36,816		4,162		40,978		6,894		47,873		40.2	%		11,057
2005		207,043		57,422		13,267		70,690		11,091		81,781		39.5	%		24,358
2006		195,325		60,388		24,362		84,750		15,559		100,309		51.4	%		39,920
2007		214,762		122,946		39,171		162,118		27,043		189,161		88.1	%		66,214
2008		185,168		55,912		28,609		84,521		45,366		129,887		70.1	%		73,975
2009		134,674		23,175		13,425		36,600		59,025		95,625		71.0	%		72,450
2010		111,029		14,651		9,844		24,495		51,307		75,802		68.3	%		61,151
2011		82,766		3,943		3,362		7,305		48,244		55,549		67.1	%		51,606
2012		66,652		975		3,762		4,737		39,519		44,256		66.4	%		43,281
2013		25,424		69		550		619		16,051		16,671		65.6	%		16,601
Total		1,488,631		422,933		146,502		569,435		326,366		895,800		60.2	%		472,867

-31-

December 2013 Global Loss Triangles - Reinsurance Segment

Excluding large losses

U.S. dollars in thousands

Specialty Lines Reinsurance (Net of Ceded Reinsurance)

Cumulative Paid Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		52			1,225			2,576			3,222			3,687			4,081			4,191			4,439			4,466			4,475			4,484			4,491
2003		15			886			2,373			3,294			4,452			4,656			4,602			4,660			4,728			4,800			4,831
2004		24			4,699			6,910			9,525			7,585			7,963			8,368			9,075			9,141			9,125
2005		265			3,772			8,768			7,471			10,158			11,573			12,292			12,450			12,699
2006		68			2,821			5,666			6,934			7,793			8,329			8,560			8,714
2007		279			4,098			7,242			8,936			10,047			10,686			11,036
2008		534			4,050			7,972			10,335			12,427			13,650
2009		121			2,196			4,283			6,338			6,635
2010		73			1,222			3,879			5,023
2011		2,365			10,645			20,438
2012		28,387			88,259
2013		1,123
Reported Loss & ALAE
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		270			3,065			4,472			4,580			4,963			4,700			4,691			4,629			4,623			4,609			4,587			4,591
2003		54			887			2,614			4,643			5,266			5,158			4,929			4,872			4,905			4,996			5,104
2004		37			7,097			7,476			10,324			9,038			8,188			8,319			8,186			8,134			9,431
2005		278			11,206			10,817			10,337			11,080			11,801			13,710			13,637			14,898
2006		69			6,022			7,949			8,880			9,035			9,226			9,256			9,185
2007		841			7,432			9,808			10,708			10,667			10,645			10,788
2008		1,072			9,821			12,870			11,804			12,130			15,075
2009		326			3,799			6,911			7,929			7,684
2010		237			3,781			5,245			6,636
2011		4,691			17,305			26,130
2012		31,773			95,652
2013		6,980
Reported Loss & ALAE Ratio to Earned Premium (excluding IBNR)
Treaty Year	Months of Development
	12			24			36			48			60			72			84			96			108			120			132			144
2002		22	%		28	%		39	%		38	%		41	%		39	%		39	%		38	%		38	%		38	%		38	%		38	%
2003		2	%		7	%		13	%		23	%		26	%		26	%		25	%		24	%		24	%		25	%		25	%
2004		0	%		29	%		24	%		33	%		29	%		26	%		26	%		26	%		25	%		30	%
2005		2	%		34	%		28	%		27	%		29	%		31	%		36	%		35	%		39	%
2006		0	%		20	%		26	%		29	%		29	%		30	%		30	%		30	%
2007		4	%		20	%		25	%		27	%		27	%		27	%		28	%
2008		5	%		30	%		38	%		35	%		36	%		45	%
2009		2	%		12	%		21	%		24	%		24	%
2010		1	%		10	%		14	%		17	%
2011		11	%		25	%		34	%
2012		29	%		67	%
2013		4	%

Treaty	Earned		Loss & ALAE
Year	Premium		Paid		Case O/S			Reported		IBNR		Ultimate		Ult. Ratio			Unpaid
2002		12,191		4,491		100			4,591		88		4,680		38.4	%		188
2003		20,142		4,831		272			5,104		236		5,340		26.5	%		508
2004		31,931		9,125		306			9,431		385		9,816		30.7	%		691
2005		38,648		12,699		2,199			14,898		590		15,488		40.1	%		2,789
2006		30,976		8,714		472			9,185		595		9,780		31.6	%		1,066
2007		38,975		11,036		(247	)		10,788		815		11,603		29.8	%		568
2008		33,855		13,650		1,425			15,075		734		15,808		46.7	%		2,159
2009		32,619		6,635		1,049			7,684		698		8,382		25.7	%		1,747
2010		38,145		5,023		1,613			6,636		2,413		9,049		23.7	%		4,026
2011		76,093		20,438		5,692			26,130		5,942		32,072		42.1	%		11,634
2012		142,594		88,259		7,393			95,652		19,438		115,091		80.7	%		26,832
2013		156,184		1,123		5,857			6,980		95,906		102,887		65.9	%		101,763
Total		652,354		186,024		26,131			212,155		127,841		339,996		52.1	%		153,972

-32-

December 2013 Global Loss Triangles - Insurance Segment

Excluding large losses on Property

U.S. dollars in thousands

Premium - Gross of ceded reinsurance
Cal/Acc Year	Property				General Casualty				Prof. Liab. Lines				Healthcare				Specialty Lines
	Written		Earned		Written		Earned		Written		Earned		Written		Earned		Written		Earned
2002		376,526		196,237		166,995		88,051		141,612		59,558		73,076		39,904		—		—
2003		554,735		483,719		305,812		257,017		301,271		237,656		95,630		76,140		—		—
2004		547,959		565,327		352,392		332,389		358,020		321,801		142,160		120,800		—		—
2005		412,879		476,481		289,364		297,511		372,460		352,174		137,074		136,577		—		—
2006		463,900		441,138		276,940		275,405		434,999		395,104		156,698		150,401		—		—
2007		391,018		423,468		252,902		264,680		452,245		431,009		153,567		147,720		—		—
2008		327,491		357,588		235,939		243,673		498,544		457,068		184,055		170,600		—		—
2009		243,193		272,873		287,085		265,068		489,872		506,027		210,422		197,314		—		—
2010		224,453		233,716		311,987		290,498		467,161		475,071		228,810		222,171		1,874		153
2011		244,636		225,599		379,295		333,193		498,288		475,741		235,559		228,445		11,278		3,124
2012		274,558		260,347		471,087		410,539		558,184		523,494		234,099		237,910		31,064		13,763
2013		305,595		288,689		626,288		540,110		588,698		568,088		219,991		233,745		64,325		33,696
Total		4,366,944		4,225,181		3,956,087		3,598,133		5,161,355		4,802,790		2,071,142		1,961,726		108,540		50,736
Loss & ALAE - Gross of ceded reinsurance
Accident Year	Property				General Casualty				Prof. Liab. Lines				Healthcare				Specialty Lines
	Paid		Reported		Paid		Reported		Paid		Reported		Paid		Reported		Paid		Reported
2002		56,701		56,701		32,509		45,256		62,538		62,538		8,027		8,027		—		—
2003		221,834		222,501		58,354		58,484		27,634		50,759		23,682		24,294		—		—
2004		238,234		238,809		35,183		43,150		48,721		55,930		16,432		16,524		—		—
2005		371,504		371,875		121,513		137,571		66,526		67,575		14,205		15,803		—		—
2006		218,960		222,291		108,837		110,876		121,125		177,967		22,403		23,184		—		—
2007		214,911		223,190		30,500		37,800		97,010		129,073		41,666		44,230		—		—
2008		223,365		224,528		56,203		70,897		193,830		223,464		37,679		46,688		—		—
2009		80,185		82,359		72,065		83,552		91,771		160,122		65,611		97,231		—		—
2010		142,847		151,297		141,538		165,337		97,257		119,358		51,166		83,261		—		—
2011		167,463		186,102		66,220		160,328		147,005		195,734		58,652		100,134		—		—
2012		55,504		81,044		49,617		91,112		76,777		168,886		19,552		56,582		202		210
2013		37,145		91,583		15,162		56,177		11,317		45,848		3,334		10,764		324		420
Total		2,028,653		2,152,281		787,700		1,060,540		1,041,511		1,457,253		362,409		526,721		526		630

-33-

December 2013 Global Loss Triangles - Insurance Segment

Excluding large losses on Property

U.S. dollars in thousands

Premium - Net of ceded reinsurance
Cal/Acc Year	Property				General Casualty				Prof. Liab. Lines				Healthcare				Specialty Lines
	Written		Earned		Written		Earned		Written		Earned		Written		Earned		Written		Earned
2002		300,021		171,696		166,995		88,051		141,612		59,558		73,076		39,904		—		—
2003		383,345		356,275		260,049		233,589		287,807		232,141		93,126		75,002		—		—
2004		308,623		333,170		283,537		271,160		330,199		304,642		126,731		114,883		—		—
2005		170,895		226,828		228,477		236,587		322,937		326,766		106,857		118,565		—		—
2006		193,652		190,783		211,686		214,376		362,190		343,955		124,109		124,024		—		—
2007		176,420		180,460		173,099		192,097		346,657		350,081		120,773		117,774		—		—
2008		169,889		173,790		150,779		162,750		386,010		342,038		149,237		131,428		—		—
2009		123,011		142,872		195,581		172,403		371,663		387,530		165,738		150,183		—		—
2010		132,548		128,427		207,783		195,237		352,831		355,437		175,110		170,003		1,874		153
2011		160,551		139,897		256,741		222,493		361,559		352,026		177,464		173,748		7,974		2,470
2012		204,046		184,341		313,042		274,262		378,205		365,086		173,997		176,483		20,486		9,471
2013		201,459		198,607		407,667		355,375		409,431		393,010		165,946		173,347		42,941		24,246
Total		2,524,460		2,427,147		2,855,437		2,618,380		4,051,102		3,812,270		1,652,165		1,565,343		73,276		36,340
Loss & ALAE - Net of ceded reinsurance
Accident Year	Property				General Casualty				Prof. Liab. Lines				Healthcare				Specialty Lines
	Paid		Reported		Paid		Reported		Paid		Reported		Paid		Reported		Paid		Reported
2002		49,067		49,067		32,509		45,256		62,538		62,538		8,027		8,027		—		—
2003		179,412		179,638		58,350		58,480		26,122		49,247		23,682		24,294		—		—
2004		152,736		153,117		32,156		39,808		48,681		55,890		16,421		16,514		—		—
2005		167,270		167,408		96,746		112,804		63,193		64,240		12,622		14,113		—		—
2006		98,988		101,414		72,748		74,787		103,946		159,555		16,875		17,657		—		—
2007		101,836		107,814		26,630		31,970		81,848		110,413		35,089		37,622		—		—
2008		125,558		125,946		42,103		53,002		154,778		182,616		33,650		39,607		—		—
2009		54,424		55,866		53,478		60,412		87,231		141,375		54,691		77,272		—		—
2010		92,881		98,475		89,512		105,190		93,515		111,877		49,743		76,309		—		—
2011		119,623		133,262		51,559		105,550		125,150		164,253		51,054		87,339		—		—
2012		43,658		63,487		43,462		77,426		72,702		154,392		17,840		46,588		126		131
2013		29,985		76,222		14,231		47,253		11,208		45,185		3,244		10,502		189		245
Total		1,215,437		1,311,716		613,483		811,939		930,913		1,301,583		322,938		455,843		316		376

-34-

December 2013 Global Loss Triangles - Reinsurance Segment

Excluding large losses on Property Per Risk and Specialty Lines

U.S. dollars in thousands

Premium - Gross of ceded reinsurance
Treaty Year	Property Catastrophe				Property Per Risk				General Casualty				Prof. Liab. Lines				Specialty Lines
	Written		Earned		Written		Earned		Written		Earned		Written		Earned		Written		Earned
2002		41,284		41,284		64,253		64,253		33,679		33,679		46,830		46,830		12,191		12,191
2003		61,251		61,251		66,185		66,185		100,615		100,615		99,803		99,803		20,142		20,142
2004		68,026		68,026		75,094		75,094		122,706		122,706		119,153		119,153		38,407		38,407
2005		82,969		82,969		77,035		77,035		156,614		156,614		207,043		207,043		41,174		41,174
2006		67,244		67,244		68,059		68,059		130,459		130,459		195,325		195,325		30,976		30,976
2007		72,659		72,659		41,917		41,917		143,414		143,414		214,762		214,762		38,975		38,975
2008		66,958		66,958		33,169		33,169		131,842		131,842		185,168		185,168		33,855		33,855
2009		83,062		83,062		35,355		35,355		156,837		156,837		134,674		134,674		32,619		32,619
2010		136,472		136,472		50,890		50,890		177,141		177,141		111,029		111,029		38,721		38,721
2011		198,541		198,072		69,634		69,634		212,529		212,486		82,766		82,766		77,908		77,908
2012		254,933		252,465		101,708		99,745		170,167		156,564		71,632		66,652		146,709		144,261
2013		325,339		239,665		125,679		74,752		170,040		55,601		68,245		25,424		195,005		156,864
Total		1,458,739		1,370,128		808,980		756,089		1,706,044		1,577,960		1,536,432		1,488,631		706,682		666,093
Loss & ALAE - Gross of ceded reinsurance
Treaty Year	Property Catastrophe				Property Per Risk				General Casualty				Prof. Liab. Lines				Specialty Lines
	Paid		Reported		Paid		Reported		Paid		Reported		Paid		Reported		Paid		Reported
2002		4,336		4,336		28,446		28,448		18,880		19,869		17,687		18,524		4,491		4,591
2003		7,237		7,237		19,377		19,428		36,800		38,890		28,948		34,098		4,831		5,104
2004		61,324		61,373		17,490		17,858		45,848		55,381		36,816		40,978		10,633		10,939
2005		153,722		154,028		47,900		48,255		59,700		63,357		57,422		70,690		13,324		15,529
2006		9,917		10,141		29,785		30,121		63,383		70,856		60,388		84,750		8,714		9,185
2007		12,641		12,789		19,896		20,199		59,483		69,384		122,946		162,118		11,036		10,788
2008		33,596		33,896		15,210		15,801		49,334		71,902		55,912		84,521		13,650		15,075
2009		4,664		5,051		23,043		23,360		44,857		60,568		23,175		36,600		6,635		7,684
2010		86,082		100,107		32,846		35,946		61,016		89,112		14,651		24,495		5,023		6,636
2011		103,495		124,451		31,706		41,381		32,168		60,018		3,943		7,305		21,002		26,694
2012		65,659		84,386		31,365		43,213		10,435		32,838		975		4,737		88,259		95,652
2013		13,043		46,205		5,155		22,853		75		2,370		69		619		1,123		6,980
Total		555,715		644,000		302,219		346,863		481,979		634,545		422,933		569,435		188,720		214,857

-35-

December 2013 Global Loss Triangles - Reinsurance Segment

Excluding large losses on Property Per Risk and Specialty Lines

U.S. dollars in thousands

Premium - Net of ceded reinsurance
Treaty Year	Property Catastrophe				Property Per Risk				General Casualty				Prof. Liab. Lines				Specialty Lines
	Written		Earned		Written		Earned		Written		Earned		Written		Earned		Written		Earned
2002		41,284		41,284		64,253		64,253		33,679		33,679		46,830		46,830		12,191		12,191
2003		61,251		61,251		66,185		66,185		100,615		100,615		99,803		99,803		20,142		20,142
2004		59,976		59,976		75,094		75,094		122,706		122,706		119,153		119,153		31,931		31,931
2005		69,029		69,029		74,575		74,575		156,484		156,484		207,043		207,043		38,648		38,648
2006		66,181		66,181		67,633		67,633		130,280		130,280		195,325		195,325		30,976		30,976
2007		72,592		72,592		41,917		41,917		143,154		143,154		214,762		214,762		38,975		38,975
2008		66,877		66,877		31,837		31,837		131,404		131,404		185,168		185,168		33,855		33,855
2009		82,982		82,982		35,355		35,355		156,565		156,565		134,674		134,674		32,619		32,619
2010		136,455		136,455		50,890		50,890		176,629		176,629		111,029		111,029		38,145		38,145
2011		198,539		198,069		69,634		69,634		212,529		212,486		82,766		82,766		76,093		76,093
2012		254,931		252,463		90,186		88,845		170,167		156,564		71,632		66,652		144,798		142,594
2013		298,263		212,589		113,954		72,111		170,040		55,601		68,245		25,424		193,122		156,184
Total		1,408,361		1,319,749		781,514		738,329		1,704,250		1,576,166		1,536,432		1,488,631		691,496		652,354
Loss & ALAE - Net of ceded reinsurance
Treaty Year	Property Catastrophe				Property Per Risk				General Casualty				Prof. Liab. Lines				Specialty Lines
	Paid		Reported		Paid		Reported		Paid		Reported		Paid		Reported		Paid		Reported
2002		4,336		4,336		28,446		28,448		18,880		19,869		17,687		18,524		4,491		4,591
2003		7,237		7,237		19,377		19,428		36,800		38,890		28,948		34,098		4,831		5,104
2004		60,338		60,387		17,490		17,858		45,848		55,381		36,816		40,978		9,125		9,431
2005		113,693		113,998		47,900		48,255		59,700		63,357		57,422		70,690		12,699		14,898
2006		9,917		10,141		29,785		30,121		63,383		70,856		60,388		84,750		8,714		9,185
2007		12,641		12,789		19,896		20,199		59,483		69,384		122,946		162,118		11,036		10,788
2008		33,596		33,896		15,210		15,801		49,334		71,902		55,912		84,521		13,650		15,075
2009		4,664		5,051		23,043		23,360		44,857		60,568		23,175		36,600		6,635		7,684
2010		86,082		100,107		32,846		35,946		61,016		89,112		14,651		24,495		5,023		6,636
2011		103,495		124,451		31,706		41,381		32,168		60,018		3,943		7,305		20,438		26,130
2012		65,659		84,386		27,905		38,439		10,435		32,838		975		4,737		88,259		95,652
2013		13,043		46,205		5,155		22,853		75		2,370		69		619		1,123		6,980
Total		514,700		602,984		298,759		342,090		481,979		634,545		422,933		569,435		186,024		212,155

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IV. SELECTED EXCERPTS FROM ALLIED WORLD’S 2013 10-K DISCLOSURE

The reserve for losses and loss expenses is comprised of two main elements: outstanding loss reserves, also known as case reserves, and reserves for IBNR. Outstanding loss reserves relate to known claims and represent management’s best estimate of the likely loss settlement. IBNR reserves relate primarily to unreported events that, based on industry information, management’s experience and actuarial evaluation, can reasonably be expected to have occurred and are reasonably likely to result in a loss to our company. IBNR reserves also relate to estimated development of reported events that based on industry information, management’s experience and actuarial evaluation, can reasonably be expected to reach our attachment point and are reasonably likely to result in a loss to our company. We also include IBNR changes in the values of claims that have been reported to us but are not yet settled. Each claim is settled individually based upon its merits and it is not unusual for a claim to take years after being reported to settle, especially if legal action is involved. As a result, reserves for losses and loss expenses include significant estimates for IBNR reserves.

The reserve for IBNR is estimated by management for each line of business based on various factors, including underwriters’ expectations about loss experience, actuarial analysis, comparisons with the results of industry benchmarks and loss experience to date. The reserve for IBNR is calculated as the ultimate amount of losses and loss expenses less cumulative paid losses and loss expenses and case reserves. Our actuaries employ generally accepted actuarial methodologies to determine estimated ultimate loss reserves.

While management believes that our case reserves and IBNR are sufficient to cover losses assumed by us, there can be no assurance that losses will not deviate from our reserves, possibly by material amounts. The methodology of estimating loss reserves is periodically reviewed to ensure that the assumptions made continue to be appropriate. To the extent actual reported losses exceed estimated losses, the carried estimate of the ultimate losses will be increased (i.e., unfavorable reserve development), and to the extent actual reported losses are less than estimated losses, the carried estimate of ultimate losses will be reduced (i.e., favorable reserve development). We record any changes in our loss reserve estimates and the related reinsurance recoverables in the periods in which they are determined. Determining whether our estimated losses are sufficient to cover all reported and non-reported claims involves a high degree of judgment. It is our practice to address unfavorable loss emergence early in our long-tail lines of business while we tend to recognize favorable loss emergence more slowly in our long-tail lines once actual loss emergence and data provides greater confidence around the adequacy of ultimate estimates.

In certain lines of business, claims are generally reported and paid within a relatively short period of time (“short-tail lines”) during and following the policy coverage period. This generally enables us to determine with greater certainty our estimate of ultimate losses and loss expenses. The estimate of reserves for our short-tail lines of business and products, including property, crop, aviation, marine, personal accident and workers compensation catastrophe relies primarily on traditional loss reserving methodologies, utilizing selected paid and reported loss development factors.

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Our casualty insurance and casualty reinsurance lines of business include general liability risks, healthcare and professional liability risks. Claims may be reported or settled several years after the coverage period has terminated for these lines of business (“long-tail lines”), which increases uncertainties of our reserve estimates in such lines. In addition, our attachment points for these long-tail lines are often relatively high, making reserving for these lines of business more difficult than short-tail lines due to having to estimate whether the severity of the estimated losses will exceed our attachment point. We establish a case reserve when sufficient information is gathered to make a reasonable estimate of the liability, which often requires a significant amount of information and time. Due to the lengthy reporting pattern of these casualty lines, reliance is placed on industry benchmarks supplemented by our own experience. For expected loss ratio selections, we are giving increasing consideration to our existing experience supplemented with analysis of loss trends, rate changes and experience of peer companies.

Our reinsurance treaties are reviewed individually, based upon individual characteristics and loss experience emergence. Loss reserves on assumed reinsurance have unique features that make them more difficult to estimate than direct insurance. We establish loss reserves upon receipt of advice from a cedent that a reserve is merited. Our claims staff may establish additional loss reserves where, in their judgment, the amount reported by a cedent is potentially inadequate. The following are the most significant features that make estimating loss reserves on assumed reinsurance difficult:

• Reinsurers have to rely upon the cedents and reinsurance intermediaries to report losses in a timely fashion.

• Reinsurers must rely upon cedents to price the underlying business appropriately.

• Reinsurers have less predictable loss emergence patterns than direct insurers, particularly when writing excess-of-loss reinsurance.

For excess-of-loss reinsurance, cedents generally are required to report losses that either exceed 50% of the retention, have a reasonable probability of exceeding the retention or meet serious injury reporting criteria. All reinsurance claims that are reserved are reviewed at least every six months. For quota share reinsurance treaties, cedents are required to give a periodic statement of account, generally monthly or quarterly. These periodic statements typically include information regarding written premiums, earned premiums, unearned premiums, ceding commissions, brokerage amounts, applicable taxes, paid losses and outstanding losses. They can be submitted 60 to 90 days after the close of the reporting period. Some quota share reinsurance treaties have specific language regarding earlier notice of serious claims.

Reinsurance generally has a greater time lag than direct insurance in the reporting of claims. The time lag is caused by the claim first being reported to the cedent, then the intermediary (such as a broker) and finally the reinsurer. This lag can be up to six months or longer in certain cases. There is also a time lag because the insurer may not be required to report claims to the reinsurer until certain reporting criteria are met. In some instances this could be several years while a claim is being litigated. We use reporting factors based on data from the Reinsurance Association of America to adjust for time lags. We also use historical treaty-specific reporting factors when applicable. Loss and premium information are entered into our reinsurance system by our claims department and our accounting department on a timely basis.

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We record the individual case reserves sent to us by the cedents through the reinsurance intermediaries. Individual claims are reviewed by our reinsurance claims department and adjusted as deemed appropriate. The loss data received from the intermediaries is checked for reasonableness and for known events. Details of the loss listings are reviewed during routine claim audits.

The expected loss ratios that we assign to each treaty are based upon analysis and modeling performed by a team of actuaries. The historical data reviewed by the team of pricing actuaries is considered in setting the reserves for each cedent. The historical data in the submissions is matched against our carried reserves for our historical treaty years.

Loss reserves do not represent an exact calculation of liability. Rather, loss reserves are estimates of what we expect the ultimate resolution and administration of claims will cost. These estimates are based on actuarial and statistical projections and on our assessment of currently available data, as well as estimates of future trends in claims severity and frequency, judicial theories of liability and other factors. Loss reserve estimates are refined as experience develops and as claims are reported and resolved. In addition, the relatively long periods between when a loss occurs and when it may be reported to our claims department for our casualty insurance and casualty reinsurance lines of business increase the uncertainties of our reserve estimates in such lines.

We utilize a variety of standard actuarial methods in our analysis. The selections from these various methods are based on the loss development characteristics of the specific line of business. For lines of business with long reporting periods such as casualty reinsurance, we may rely more on an expected loss ratio method (as described below) until losses begin to develop. For lines of business with short reporting periods such as property insurance, we may rely more on a paid loss development method (as described below) as losses are reported relatively quickly. The actuarial methods we utilize include:

Paid Loss Development Method. We estimate ultimate losses by calculating past paid loss development factors and applying them to exposure periods with further expected paid loss development. The paid loss development method assumes that losses are paid at a consistent rate. The paid loss development method provides an objective test of reported loss projections because paid losses contain no reserve estimates. In some circumstances, paid losses for recent periods may be too varied for accurate predictions. For many coverages, especially casualty coverages, claim payments are made slowly and it may take years for claims to be fully reported and settled. These payments may be unreliable for determining future loss projections because of shifts in settlement patterns or because of large settlements in the early stages of development. Choosing an appropriate “tail factor” to determine the amount of payments from the latest development period to the ultimate development period may also require considerable judgment, especially for coverages that have long payment patterns. As we have limited payment history, we have had to supplement our paid loss development patterns with appropriate benchmarks.

Reported Loss Development Method. We estimate ultimate losses by calculating past reported loss development factors and applying them to exposure periods with further expected reported loss development. Since reported losses include payments and case reserves, changes in

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both of these amounts are incorporated in this method. This approach provides a larger volume of data to estimate ultimate losses than the paid loss development method. Thus, reported loss patterns may be less varied than paid loss patterns, especially for coverages that have historically been paid out over a long period of time but for which claims are reported relatively early and have case loss reserve estimates established. This method assumes that reserves have been established using consistent practices over the historical period that is reviewed. Changes in claims handling procedures, large claims or significant numbers of claims of an unusual nature may cause results to be too varied for accurate forecasting. Also, choosing an appropriate “tail factor” to determine the change in reported loss from the latest development period to the ultimate development period may require considerable judgment. As we have limited reported history, we have had to supplement our reported loss development patterns with appropriate benchmarks.

Expected Loss Ratio Method. To estimate ultimate losses under the expected loss ratio method, we multiply earned premiums by an expected loss ratio. The expected loss ratio is selected utilizing industry data, historical company data and professional judgment. This method is particularly useful for new lines of business where there are no historical losses or where past loss experience is not credible.

Bornhuetter-Ferguson Paid Loss Method. The Bornhuetter-Ferguson paid loss method is a combination of the paid loss development method and the expected loss ratio method. The amount of losses yet to be paid is based upon the expected loss ratios and the expected percentage of losses unpaid. These expected loss ratios are modified to the extent paid losses to date differ from what would have been expected to have been paid based upon the selected paid loss development pattern. This method avoids some of the distortions that could result from a large development factor being applied to a small base of paid losses to calculate ultimate losses. This method will react slowly if actual loss ratios develop differently because of major changes in rate levels, retentions or deductibles, the forms and conditions of reinsurance coverage, the types of risks covered or a variety of other changes.

B-F Method. The B-F method is similar to the Bornhuetter-Ferguson paid loss method with the exception that it uses reported losses and reported loss development factors.

During 2013, 2012 and 2011, we adjusted our reliance on actuarial methods utilized for certain casualty lines of business and loss years within each of our operating segments shifting from the expected loss ratio method to the B-F method to varying degrees depending on the class of business. For example, we would typically adjust to the B-F method from an expected loss ratio method more quickly for primary casualty compared to excess casualty. This is because we typically would have greater confidence in the ultimate losses for primary casualty earlier than excess casualty because of the differences in the loss reporting patterns. Placing greater reliance on more responsive actuarial methods for certain casualty lines of business and loss years within each of our operating segments is a natural progression as we mature as a company and gain sufficient historical experience of our own that allows us to further refine our estimate of the reserve for losses and loss expenses. We believe utilizing only the B-F method for certain older loss years will more accurately reflect the reported loss activity we have had thus far in our ultimate loss ratio selections, and will better reflect how the ultimate losses will develop over time. We will continue to utilize the expected loss ratio method for the most recent loss years until we have sufficient experience to utilize other acceptable actuarial methodologies.

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We expect that the trend of placing greater reliance on more responsive actuarial methods, for example from the expected loss ratio method to the B-F method, to continue as both (1) our loss years mature and become more statistically reliable and (2) as we build databases of our internal loss development patterns. The expected loss ratio remains a key assumption as the Bornhuetter-Ferguson methods rely upon an expected loss ratio selection and a loss development pattern selection.

The key assumptions used to arrive at our best estimate of loss reserves are the expected loss ratios, rate of loss cost inflation, selection of benchmarks and reported and paid loss emergence patterns. Our reporting factors and expected loss ratios are based on a blend of our own experience and industry benchmarks for long-tailed business and primarily our own experience for short-tail business. The benchmarks selected were those that we believe are most similar to our underwriting business.

Our expected loss ratios for short-tail lines change from year to year. As our losses from short-tail lines of business are reported relatively quickly, we select our expected loss ratios for the most recent years based upon our actual loss ratios for our older years adjusted for rate changes, inflation, cost of reinsurance and average storm activity. For the short-tail lines, we initially used benchmarks for reported and paid loss emergence patterns. As we mature as a company, we have begun supplementing those benchmark patterns with our actual patterns as appropriate. For the long-tail lines, we continue to use benchmark patterns, although we update the benchmark patterns as additional information is published regarding the benchmark data.

For short-tail lines, the primary assumption that changed during both 2013 as compared to 2012 and 2012 as compared to 2011 as it relates to prior year losses was actual paid and reported loss emergence patterns were generally less severe than estimated for each year due to lower frequency and severity of reported losses. As a result of this change, we recognized net favorable prior year reserve development in both 2013 and 2012.

During the years ended December 31, 2013, 2012 and 2011, we incurred $13.5 million, $179.6 million and $292.2 million of catastrophe-related losses, respectively. In addition, during the year ended December 31, 2012, we recognized $36.0 million in drought losses on the U.S. crop reinsurance portfolio. We classify catastrophe losses as those losses that result from a major singular event or series of similar events (such as tornadoes) that are assigned a catastrophe loss number by industry data services, where our consolidated losses are expected to be at least $10 million per loss event or series of similar events and where we believe it is important to our investors’ understanding of our operations. We had a number of large losses incurred during the year ended December 31, 2013 that did not meet our criteria to be classified as a catastrophe loss.

We will continue to evaluate and monitor the development of our reported losses and the impact they have on our current and future assumptions. We believe recognition of loss reserve changes in the period they are recorded is appropriate. We do not deviate downward from the expected loss ratio method when a clear pattern of reported losses has not emerged.

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The selection of the expected loss ratios for the long-tail lines is our most significant assumption. Due to the lengthy reporting pattern of long-tail lines, we supplement our own experience with industry benchmarks of expected loss ratios and reporting patterns in addition to our own experience. For our older loss years that are long-tail lines, the primary assumption that changed during both 2013 as compared to 2012 and 2012 as compared to 2011 as it relates to prior year losses was using the Bornhuetter-Ferguson loss development method for certain casualty lines of business and loss years as discussed previously. This method calculated a lower projected loss ratio based on loss emergence patterns to date. As a result of the change in the expected loss ratio, we recognized net favorable prior year reserve development in 2013, 2012 and 2011. For the year ended December 31, 2013, we recorded a decrease in losses and loss expenses of $110.5 million as a result of shifting from the expected loss ratio method to the B-F method for older loss years. Also during 2013, actual paid and reported loss emergence was more severe than estimated in our U.S. insurance segment for the 2011 and 2012 loss years. The additions to the 2011 and 2012 loss year reserves are consistent with our practice of addressing unfavorable loss emergence early.

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V. GLOSSARY

Accident year	The year in which the event occurred that triggers a claim to us. All years referred to are years ending December 31.
ALAE	Allocated loss adjustment expense, which is an estimate of the associated external expenses to be incurred in settling a claim. ALAE includes the costs of third party loss assessors and legal experts.
Assumed reinsurance	That portion of a risk that a reinsurer accepts from an insurer in return for a stated premium.
Attachment point	The loss point of which an insurance or reinsurance policy becomes operative and below which any losses are retained by either the insured or other insurers or reinsurers, as the case may be.
Case reserves	Loss reserves, established with respect to specific, individual reported claims.
Casualty lines	Insurance that is primarily concerned with losses due to injuries to persons and liability imposed on the insured for such injury or for damage to the property of others.
Catastrophe reinsurance	A form of excess-of-loss reinsurance that, subject to a specified limit, indemnifies the ceding company for the amount of loss in excess of a specified retention with respect to an accumulation of losses resulting from a catastrophic event. The actual reinsurance document is called a “catastrophe cover.” These reinsurance contracts are typically designed to cover property insurance losses but can be written to cover other types of insurance losses such as workers’ compensation policies.

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Cede, cedent or ceding company	When an insurer transfers some or all of its risk to a reinsurer, it “cedes” business and is referred to as the “ceding company” or “cedent.”
Claims-made policies	A liability policy covering all claims first advised during the term of the insurance policy, regardless of when the loss itself was sustained.
Deductible	The amount of exposure an insured retains on any one risk or group of risks. The term may apply to an insurance policy, where the insured is an individual or business, or a reinsurance contract, where the insured is an insurance company. See “Retention.”
D&O side A cover	Insurance that provides liability coverage to directors and officers for non-indemnified losses arising from their negligence or malfeasance. Coverage applies only if the directors and officers are not indemnified by their company for such loss. Such coverage is provided on both an excess basis (i.e., policy attaches after all underlying policy limits are exhausted) and on a “difference-in-conditions” basis (i.e., policy drops down and attaches at a lower attachment point due to the failure or inability of the underlying policy(ies) to pay the loss).
Earned premiums	That portion of premiums written that applies to the expired portion of the policy term. Earned premiums are recognized as revenues under both statutory accounting practice and accounting principles generally accepted in the United States of America.

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Employment practices liability insurance	Insurance that primarily provides liability coverage to organizations and their employees for losses arising from acts of discrimination, harassment and retaliation against current and prospective employees of the organization.
Errors and omissions	Insurance that provides liability coverage for claims arising from professional negligence or malpractice, subject to applicable exclusions, terms and conditions of the policy.
Excess or Excess layer	Insurance to cover losses in one or more layers above a certain amount with losses below that amount usually covered by the insured’s primary policy and its self-insured retention.
Excess-of-loss reinsurance	Reinsurance that indemnifies the insured against all or a specified portion of losses over a specified amount or retention.
Exclusions	Provisions in an insurance or reinsurance policy excluding certain risks or otherwise limiting the scope of coverage.
Exposure	The possibility of loss. A unit of measure of the amount of risk a company assumes.
Facultative reinsurance	The reinsurance of all or a portion of the insurance provided by a single policy. Each policy reinsured is separately negotiated.
Fiduciary liability insurance	Insurance that primarily provides liability coverage to fiduciaries of employee benefit and welfare plans for losses arising from the breach of any fiduciary duty owed to plan beneficiaries.

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General casualty	Insurance that is primarily concerned with losses due to injuries to persons and liability imposed on the insured for such injury or for damage to the property of others.
Global loss triangles	A table of loss experience showing total losses for a certain period at regular valuation dates, reflecting the change in amounts as claims mature. Older periods in the table will have one more entry than the next youngest period, leading to the triangle shape of the data in the table.
Gross premiums written	Total premiums for insurance and reinsurance written during a given period.
Healthcare lines	Insurance coverage, often referred to as medical malpractice insurance, which addresses liability risks of doctors, surgeons, nurses, other healthcare professionals and the institutions (hospitals, clinics, etc.), in which they practice.
Incurred but not reported (“IBNR”) reserves	Reserves established by us for claims that have occurred but have not yet been reported to us as well as for changes in the values of claims that have been reported to us but are not yet settled.
LAE	The total of ALAE and ULAE.
Loss corridor	A mechanism contained in a reinsurance treaty that requires the cedent to be responsible for a certain amount of the ultimate net loss that is above the company’s designated retention and below the designated limit, and which would otherwise be reimbursed under the treaty. Loss corridors are employed to mitigate the volatility of reinsurance agreements.

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Loss development	The difference between the original loss as initially reserved by an insurer or reinsurer and its subsequent evaluation at a later date or at the time of its closure. Loss development occurs because of inflation and time lags between the occurrence of claims and the time they are actually reported to an insurer or reinsurer. To account for these increases, a “loss development factor” or multiplier is usually applied to a claim or group of claims in an effort to more accurately project the ultimate amount that will be paid.
Loss reserves	Liabilities established by insurers and reinsurers to reflect the estimated cost of claims incurred that the insurer or reinsurer will ultimately be required to pay. Reserves are established for losses and for loss expenses, and consist of case reserves and IBNR reserves. As the term is used in this Form 10-K, “loss reserves” is meant to include reserves for both losses and for loss expenses.
Loss year	The year to which a claim is attributed based upon the terms in the underlying policy or contract. All years referred to are years ending December 31.
Losses and loss expense ratio	Derived by dividing net losses and loss expenses by net earned premiums.
Losses and loss expenses	“Losses” are an occurrence that is the basis for submission or payment of a claim. Losses may be covered, limited or excluded from coverage, depending on the terms of the insurance policy or other insurance or reinsurance contracts. “Loss expenses” are the expenses incurred by an insurance or reinsurance company in settling a loss.

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Losses discovered basis	Covers losses that are discovered by the insured during the policy period and a specified period thereafter (unless replaced with similar insurance), no matter when the loss occurred and it does not matter if the insured had prior coverage.
Net limits	The amount that an insurer or reinsurer will insure or reinsure for a specified risk, a portfolio of risks or on a single insured entity, less any applicable reinsurance purchased by such insurer or reinsurer. The term also refers to the maximum amount of benefit payable for a given claim or occurrence.
Occurrence policies	A liability policy covering all claims arising from an event that takes place during the policy period, regardless of when the claim is reported to us.
Occurrence-reported policies	A liability policy covering all claims arising from an event that takes place after a date specified in the policy and the claims must be reported to the insurer during the policy period.
Paid losses	Claim amounts paid to insureds or ceding companies.
Primary insurance	Insurance that absorbs the losses immediately above the insured’s retention layer. A primary insurer will pay up to a certain dollar amount of losses over the insured’s retention, at which point a higher layer excess insurer will be liable for additional losses. The coverage terms of a primary insurance layer typically assume an element of regular loss frequency.

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Professional liability	Insurance that provides liability coverage to directors and officers, attorneys, doctors, accountants and other professionals who offer services to the general public and claim expertise in a particular area greater than the ordinary layperson for their negligence or malfeasance.
Property catastrophe coverage	In reinsurance, coverage that protects the ceding company against accumulated losses in excess of a stipulated sum that arise from a catastrophic event such as an earthquake, fire or windstorm. “Catastrophe loss” generally refers to the total loss of an insurer arising out of a single catastrophic event.
Quota share reinsurance	A proportional reinsurance treaty in which the ceding company cedes an agreed-on percentage of every risk it insures that falls within a class or classes of business subject to the treaty.
Reinsurance	The practice whereby one insurer, called the reinsurer, in consideration of a premium paid to that reinsurer, agrees to indemnify another insurer, called the ceding company, for part or all of the liability of the ceding company under one or more policies or contracts of insurance that it has issued.
Report year	The year in which a claim is reported to us. All years referred to are years ending December 31.
Reserves	Liabilities established by insurers and reinsurers to reflect the estimated cost of claims incurred that the insurer or reinsurer will ultimately be required to pay. Reserves are established for losses and for loss expenses, and consist of case reserves and IBNR reserves. As the term is used in this report, “reserves” are meant to include reserves for both losses and for loss expenses.

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Retention	The amount of exposure an insured retains on any one risk or group of risks. The term may apply to an insurance policy, where the insured is an individual or business, or a reinsurance contract, where the insured is an insurance company. See “Deductible.”
Short tail	Lines of business where claims are generally reported and paid within a relatively short period of time following the policy coverage period.
Surplus treaty reinsurance	Reinsurance contracts under which the ceding company agrees to cede and the reinsurer agrees to assume part of every risk that exceeds the ceding company’s predetermined retention limit. The reinsurer shares in premiums and losses in the same proportion as it shares in the total policy limits of the risk.
Swing-rated premium	Earned premiums from a “swing-rated” reinsurance contract, which is a contract that links the ultimate amount of ceded premium to the ultimate loss ratio on the reinsured business. This type of reinsurance contract enables the cedent to retain a greater portion of premium if the ultimate loss ratio develops at a level below the initial loss threshold set by the reinsurers, but requires a higher amount of ceded premium if the ultimate loss ratio develops above the initial threshold.

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Treaties	Reinsurance contracts under which the ceding company agrees to cede and the reinsurer agrees to assume risks of a particular class or classes of business.
Treaty year	The year in which the contract incepts. Exposure from contracts incepting during the current treaty year will potentially affect both the current accident year as well future accident years.
ULAE	Means unallocated loss adjustment expenses, which are an assessment of the internal expenses required to settle claims.
Ultimate loss	Total of all expected settlement amounts, whether paid or reserved together with any associated loss adjustment expenses, and is the estimated total amount of loss at the measurement date. For purposes of this report, “ultimate loss” is the sum of paid losses, case reserves and IBNR.
Underwriter	An employee of an insurance or reinsurance company who examines, accepts or rejects risks and classifies accepted risks in order to charge an appropriate premium for each accepted risk. The underwriter is expected to select business that will produce an average risk of loss no greater than that anticipated for the class of business.

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